Crypto exchange giant FTX said that its European division has received a license to operate as an investment firm in the region.
The Cyprus Securities and Exchange Commission granted FTX a Cyprus Investment Firm License, according to a statement issued on Thursday. This requires FTX Europe to meet standards outlined in the European Union's MiFID II directive, including those on the segregation and protection of client funds, business transparency and capital adequacy, according to the company.
The Cypriot license allows FTX to serve the whole European Economic Area, which includes the EU, Iceland, Liechtenstein and Norway. FTX says it's the only crypto exchange to provide a full suite of exchange services under a full MiFID II license.
"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," FTX CEO Sam Bankman-Fried said in the statement.
FTX launched its European division in March. FTX Europe’s main base is in Switzerland, with subsidiaries in Dubai and Cyprus, with the latter serving the European Economic Area.
Patrick Gruhn, the head of FTX Europe, told The Block in an interview in March that FTX's goal was to become the top crypto exchange in the region. He said at the time that the company planned an ambitious marketing program that would include paid social media ads and sponsorship of music festivals.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.