FTX Europe, the European subsidiary of the now-collapsed global crypto giant, sought a trading license in Switzerland but failed. Meanwhile, the entity lost its Cypriot license amid the fallout.
There is no official confirmation on FTX‘s attempt for a Swiss trading license, but local publication NZZ reported on it, citing anonymous people close to the situation.
Based in Pfäffikon near Zurich, FTX Europe was operating in the European Union with a Cyprus Investment Firm (CIF) license. The license was granted in September, which allowed the European arm of FTX to offer crypto derivatives to retail customers within the European Economic Area (EEA). The Cypriot license has now been suspended.
The exchange’s attempt to gain an “organized trading system” from Swiss banking regulator Finma was kept out of public attention. The license would have further strengthened FTX’s regulatory position, making it one of the few cryptocurrency companies with a Swiss license.
The Australian financial market regulator also suspended the license of the local FTX entity until 15 May 2023, as the company entered into voluntary administration.
The Collapse of a Giant
FTX has grown aggressively since its establishment in 2019. The exchange was valued at $34 billion in its last funding round, but now venture capital firms have been writing off their hundreds of millions of dollars in FTX investments.
FTX Trading Ltd., Alameda Research, and over 130 other affiliates
