The Securities and Exchange Commission of Cyprus, or CySEC, reportedly issued an announcement amid FTX submitting for Chapter 11 chapter within the United States requesting the trade halt operations for its Europe arm.
According to a Nov. 11 Reuters report, the CySEC mentioned it had requested FTX Europe to “suspend its operations and to proceed immediately with a number of actions for the protection of the investors” on Nov. 9. It’s unclear why the monetary regulator selected to reiterate its name to the crypto trade, provided that FTX Europe is considered one of roughly 130 firms in FTX Group that can be submitting for chapter.
CySEC permitted the FTX arm to function within the island nation from its regional headquarters in March, with its European headquarters primarily based in Switzerland. Amid FTX’s liquidity points, world monetary policymakers have responded with solutions for extra laws on crypto corporations, in addition to freezing belongings with the trade’s native companies, as was the case within the Bahamas.
Related: Crypto.com scores regulatory approval from Cyprus SEC
FTX CEO Sam Bankman-Fried mentioned on Nov. 11 he could be engaged on “giving clarity on where things are in terms of user recovery” as quickly as doable. He resigned amid chapter proceedings, with John Ray taking up as CEO.