Key Points:

• The Cyprus SEC has suspended FTX.com's CIF license until May 30, 2025.
• FTX EU is banned from providing services, accepting new clients, or executing any financial transactions during the suspension.

The Cyprus Securities and Exchange Commission announced that the Cypriot Investment Firm (CIF) FTX license suspension would be considered further until May 30, 2025.

Cyprus SEC Extends FTX License Suspension Until May 2025

FTX license suspension is yet another decision demonstrating continuous regulation pressure on FTX, which was once one of the leading participants in the crypto market in Europe before its bankruptcy.

According to the regulatory notice published by CySEC, the above suspension is extended, and FTX license suspension means the troubled firm is strictly prohibited from providing services and establishing new business relationships. The firm is also not allowed to accept new clients. It is also barred from executing customer instructions related to the purchase of financial instruments, which means the troubled firm is not allowed to offer investment services either in Cyprus or abroad.

Read more: FTX Bankruptcy Plan Guarantees Full Repayment with Interest

Impact of FTX Suspension on Customer Fund Withdrawals

FTX EU and its suspended brands must cease promoting themselves as providers of investment services and distributing similar advertisements. They are to be ordered to close all the open positions associated with customer contracts at expiration or by customer request and ensure that the clients receive their funds and profits, if any, in the shortest time.

Although FTX license suspension had announced a tentative process whereby clients might request their final balances and withdraw fiat money from their isolated accounts, the extension of the suspension by CySEC shows the gravity of the regulatory concerns related to the firm's operation. It's an extension that indicates not only how the operation cannot be allowed to function currently but, to a wide extent, serves notice to the market at large that regulators will have a very conservative approach toward cryptocurrency exchanges regarding strict compliance.