Cryptocurrency exchange FTX announced on Thursday that its European division, FTX Europe, obtained a license to operate as an investment firm in the region.
FTX said on Thursday via a statement that its European division has received a license to operate as an investment firm in the area. The crypto exchange is the only one to have been awarded permission to provide a full suite of exchange services under a full Markets in Financial Instruments (MiFID II) license. FTX Europe was granted a Cyprus Investment Firm License by the Cyprus Securities and Exchange Commission (CySEC) which requires it to meet the standards set forth in the European Union’s MiFID II directive.
Patrick Gruhn, head of FTX Europe commented on the news:
After launching our European operations earlier this year we’re excited to receive approval from the regulators in Cyprus. Operating under this license will further our goal of being a European entity regulated to the highest standard. We look forward to continuing our productive relationship with CySEC as we continue to expand our European offerings.
The license allows FTX to provide services to the entire European Economic Area which includes the European Union, Iceland, Norway, and Liechtenstein. FTX CEO Sam Bankman-Fried said in a statement:
Securing 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 are continuing to work with CySEC and regulators across the globe to be the leader in the digital asset industry when it comes to meeting the financial standards that are expected of traditional financial institutions.
U.K. Regulator Warns FTX Is Operating Without Authorisation
While FTX enjoys licensing approval in most of Europe, Britain’s top financial regulator, the Financial Conduct Authority (FCA), has issued a warning about the exchange operating in the U.K. without the proper authorisation. The regulator said:
Almost all firms and individuals offering, promoting or selling financial services or products in the U.K. have to be authorized or registered by us.
The FCA published a warning regarding the exchange on its website merely a day after it announced it had successfully obtained a license to operate in the European region, and said that it believed that the firm may be providing financial services without necessary authorisation from the authority.
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