After the recent turmoil, it appeared Reports Reports are that the European license for FTX will soon be suspended by regulators in Cyprus.

It told Bloomberg, citing people familiar with the matter, that the suspension would be completed by next Friday.

Meanwhile, on November 9, CySEC asked FTX Europe to suspend its operations and immediately proceeded with several measures to protect investors.

About two months ago, cryptocurrency exchange FTX announced that it had received a license from the European Union allowing it to operate across Europe.

FTX is licensed by the Cyprus Securities and Exchange Commission.

FTX had to meet certain requirements specified in the EU MiFID II Directive.

Some of the conditions include segregation and protection of client funds, transaction transparency and capital adequacy.

Months after being licensed, FTX came under investigation when a balance sheet related to its sister company Alameda Research was leaked.

The balance sheet revealed significant liabilities and holdings of FTX’s FTT digital currency.

Subsequently, Binance CEO (CZ) announced the liquidation of all holdings of the platform by FTT.

According to Yi He, co-founder of Binance, the company’s decision to sell its FTT holdings was based solely on an investment-related exit decision.

Some believe that there are more unofficial things, which has caused investors to panic and the collapse of the digital currency FTT, which has a negative impact on the crypto market.

Since the platform has a huge influence with many notable figures in the crypto space as its ambassadors, it gives investors immense leverage, Securities and Exchange Commission (SEC) Chairman Gary Gensler said in an interview with CNBC.

According to Gensler, investors and the general public can fall prey to celebrity hype, which has become increasingly common over the past year.

Gensler added:

I think investors need better protection in this area.

This is a highly inconsistent field, but it is subject to regulation.

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