Swiss Regulator Rejected FTX Europe's Trading License Application

Finance Magnates

Cryptocoins News / Finance Magnates 14 Views

<p>FTX Europe, the European subsidiary of the now-collapsed global crypto giant, sought a trading license in Switzerland but failed. Meanwhile, the entity <a href="https://www.financemagnates.com/cryptocurrency/ftxs-cysec-license-suspension-likely-to-start-wider-regulatory-audits/" target="_blank">lost its Cypriot license</a> amid the fallout.</p><p>There is no official confirmation on <a href="https://www.financemagnates.com/tag/ftx/" target="_blank">FTX</a>'s attempt for a Swiss trading license, but local publication NZZ reported on it, citing anonymous people close to the situation.</p><p>Based in PfΓ€ffikon 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.</p><p>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.</p><p>On top of that, the Australian financial market regulator <a href="https://www.financemagnates.com/cryptocurrency/asic-suspends-ftxs-afs-license/" target="_blank">suspended the license of the local FTX entity</a> until 15 May 2023, as the company entered into voluntary administration.</p><p>The Collapse of a Giant</p><p>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 hundreds of millions of dollars in FTX investments.</p><p>FTX Trading Ltd., Alameda Research, and over 130 other <a href="https://www.financemagnates.com/terms/a/affiliates/" target="_blank" id="dd69a3b8-c999-4378-821f-0d49fbc5743e_1" class="terms__main-term">affiliates</a> filed for Chapter 11 <a href="https://www.financemagnates.com/terms/b/bankruptcy/" target="_blank" id="41b3ef0d-d805-441d-8443-121890264e94_1" class="terms__secondary-term">bankruptcy</a> protection in Delaware earlier this month. Interestingly, the Bahamas-based entity of FTX approached a New York court for Chapter 15 bankruptcy protection. Meanwhile, the Bahamas financial market regulator ordered the local entity to <a href="https://www.financemagnates.com/cryptocurrency/the-bahamas-regulator-orders-ftx-to-transfer-cryptos-to-government-wallets/" target="_blank">transfer all customers' digital assets to government-controlled crypto wallets.</a></p><p>Moreover, the bankruptcy filing of the exchange reveals some of the financial blunders of FTX. The exchange owes $3.1 billion to its top 50 creditors. The top individual alone is owed $226 million, and others are in the range of $21 million and $203 million.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">FTX discloses its top 50 creditors are owed $3.1 billion. The largest creditor is owed $226 million.All names were redacted. <a href="https://t.co/JGeddvMB7w">pic.twitter.com/JGeddvMB7w</a></p>β€” Tom Dunleavy (@dunleavy89) <a href="https://twitter.com/dunleavy89/status/1594401172537974784?ref_src=twsrc%5Etfw">November 20, 2022</a></blockquote> This article was written by Arnab Shome at www.financemagnates.com.
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