CySEC asked European arm of FTX to suspend operations before bankruptcy: report

FTX Europe is one of approximately 130 companies in the FTX Group that will be subject to bankruptcy proceedings in the United States.

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The Cyprus Securities and Exchange Commission, or CySEC, has reportedly issued a statement as part of FTX's Chapter 11 bankruptcy filing in the United States, calling for a halt to foreign exchange trading for its European arm.

According to a Nov. 11 Reuters report, CySEC said it had instructed FTX Europe to “suspend operations and immediately take a number of actions for the protection of investors” on Nov. 9. It is unclear why the financial regulator has chosen to reiterate its call for the crypto exchange, given that FTX Europe is one of approximately 130 FTX Group companies that will file for bankruptcy.

CySEC approved the FTX branch to operate in the island nation from its regional headquarters in March, with its European headquarters based in Switzerland. Amid FTX's liquidity issues, global financial policymakers have responded by suggesting additional regulations on crypto firms, as well as freezing assets with local firms on the exchange, as was the case in the Bahamas. /p>

Related: Crypto.com Gains Regulatory Approval from Cyprus SEC

FTX CEO Sam Bankman-Fried said on Nov. 11 that he would work to “clarify where things stand in terms of user recovery” as soon as possible. He resigned amid bankruptcy proceedings, with John Ray taking over as CEO.