In the fierce competition between exchanges to show credentials to regulators from here and elsewhere, the European division of FTX has just taken a decisive step by becoming the first crypto platform to receive Cyprus Securities and Exchange Commission (CySEC) approval. A registration which imposes very demanding standards on the financial companies which obtain it, but which opens the doors of the European Economic Area to them.
FTX Obtains Regulatory Registration in Europe
FTX Europe, which had already received initial approval from CySEC at the time of its launch last March, can now take advantage of a license allowing it to operate as Cyprus investment firm (CIF). This authorization will enable it to offer a range of services to the entire European Economic Area. An economic union which includes the 27 EU Member States but also Iceland, Liechtenstein and Norway.
After launching our European operations earlier this year, we are delighted to receive regulatory approval in Cyprus. Operating under this license will enable us to achieve our goal of being a European regulated entity. We look forward to continuing our productive relationship with CySEC as we continue to expand our European offerings.
Patrick Gruhn, Head of FTX Europe, in Press Release
In fact, this coveted CIF status requires the regulated company to comply with the MiFID II directive (directive on financial instruments markets) of the European Union which came into force in 2018, otherwise the license can be revoked at any time. FTX Europe will therefore have to comply with a set of established standards relating in particular to investor protection, fee transparency, internal and external controls, market structure and, since August, sustainability..
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.
Sam Bankman-Fried, CEO and Co-Founder of FTX, in Press Release
FTX is ahead of Binance on the European regulatory front
The still young FTX platform, launched in 2019 but already showing tremendous growth, has established itself in the landscape alongside behemoths like Coinbase or Binance. With the latter, the standoff is obvious, the young ambitious seeking to dislodge the CZ exchange from its leading position. Fact, the fight is also taking place on the level of regulations. Because, to support their growth, they are today obliged to deploy a number of arguments and skill to slip into the good papers of the regulatory authorities. Moreover, they sometimes rely on the same type of strategy.
It is clear that with this license which opens the doors to the European continent, FTX is ahead of its great rival which is progressing country after country. (France, Italy, Spain), but without having for the moment obtained approval on a European scale.
Regulation has become a major issue for centralized crypto exchanges, so as long as you choose one to make your first purchases, you might as well choose FTX, which plays the compliance game. register without delay on its platform and benefit from a lifetime reduction on trading fees (commercial link).