NICOSIA, Dec 13 (Reuters) – Cyprus’s securities regulator plans to increase the suspension of the licence of FTX EU and can meet to debate the matter subsequent week, a spokesperson mentioned on Tuesday.
“CySEC is taking all the required actions to safeguard the pursuits of traders of FTX EU and is working carefully with the administrator within the U.S. underneath chapter 11,” the particular person mentioned in a written remark to Reuters.
The Cypriot regulator suspended the licence of FTX EU on Nov. 11, simply earlier than the cryptocurrency alternate imploded, searching for chapter safety in the USA.
FTX EU had then been given a month to rectify what CySEC suspected had been violations of circumstances to safeguard consumer belongings and on the suitability of administration.
Its former CEO Sam Bankman-Fried was charged by the U.S. Securities and Change Fee on Tuesday of defrauding traders, following his arrest by Bahamian authorities late on Monday.
FTX had introduced in September that it had acquired approval to function FTX EU as a Cyprus Funding Agency. CySEC has mentioned it was not licensed to interact within the direct buying and selling of crypto belongings.
Reporting by Michele Kambas Modifying by Jason Neely and Mark Potter
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