In competition to comply with various regulators, the European branch of FTX has just obtained a new license from the Cyprus Securities and Exchange Commission or CySEC.
This means that FTX will now operate as a CIF and will therefore have to show transparency and impeccable quality on the various services offered on its platform.
A license that opens FTX doors to the European Economic Area
The company is now registered as a Cyprus investment firm (CIF) and will have to comply with the MiFID (Markets in Financial Instruments Directive) II directives of the European Union. This authorization will enable it to offer a range of services to the entire European Economic Area.
Coming into force in 2018, MiFID II was implemented by the European Commission to ensure that users of financial tools such as trading platforms or banks benefit from increased security in the markets.
The companies concerned must ensure total transparency by making the prices of traded assets visible before and after the execution of transactions, but also ensure the protection of their clients’ funds, among other things.
Patrick Gruhn, Head of FTX Europe said:
Following the launch of our European operations earlier this year, we are delighted to receive approval from the regulators in Cyprus. Operating under this license will allow us to achieve our goal of being a regulated European entity. We look forward to continuing our productive relationship with CySEC as we continue to expand our European offerings.
Back in March, FTX affirmed the giant’s commitment to expanding into Europe through an ambitious marketing program, including social media advertising and partnerships with events such as music festivals.
FTX was launched in 2019 but is already showing remarkable growth by establishing itself in the landscape this time alongside Coinbase or Binance.