In order to comply with the various regulators, the European branch of FTX has just obtained a new license from CySEC. FTX will now operate as a CIF and will therefore have to demonstrate transparency and impeccable quality on the various services offered on its platform.
FTX strengthens its presence in Europe
FTX Europe, the European arm of the FTX exchange, has just received a new approval from the Cyprus Securities and Exchange Commission (CySEC) in order to strengthen its presence on the European territory.
The company is now registered as a Cyprus investment firm (CIF) and will now have to comply with the European Union’s MiFID (Markets in Financial Instruments Directive) II directives.
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.
Among other things, 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.
Sam Bankman-Fried, the billionaire and philanthropist CEO of the FTX platform, whom we have profiled in detail before, welcomed this step forward in the European market:
“Obtaining this license in the European Union is an important step in achieving our goal of becoming one of the most regulated exchanges in the world. We continue to work with CySEC and regulators around the world to lead the digital asset industry when it comes to meeting the financial standards expected of traditional financial institutions.”
FTX’s European expansion
With its new license, FTX becomes the first cryptocurrency exchange in the world to meet such high market standards.
Patrick Gruhn, the head of FTX Europe, said that the exchange wanted to build on this and continue to comply with European regulators:
“We look forward to continuing our productive relationship with CySEC as we continue to develop our offerings in Europe.”
Last March, he had already affirmed the giant’s desire to expand into Europe through an ambitious marketing program, including advertising on social networks as well as partnerships with events such as music festivals.
To this end, FTX had concluded a major partnership with the Tomorrowland festival as part of its “Winter” edition, which took place in Alpe d’Huez last March, to allow festival-goers to get their hands on various non-fungible tokens (NFT)