FTX Europe, an affiliate of cryptocurrency exchange FTX, has launched a new website to enable users to withdraw their funds from the defunct cryptocurrency platform. Withdrawal requests must be submitted through the new website and will be “subject to customary know-your-customer and anti-money-laundering checks.” FTX EU has begun the process of returning segregated funds to customers in compliance with Cyprus law, following the suspension of its licence by the Cyprus Securities and Exchange Commission. Only FTX EU clients who registered an account after March 2022 are eligible for withdrawals, and customers must undergo formal know-your-customer (KYC) and anti-money-laundering (AML) verifications.
FTX announced the launch of FTX EU in March 2022, saying it would interact with regulators in various European countries to maintain a safe and secure environment for cryptocurrency trading. After FTX Japan announced its plan to open withdrawals in mid-February 2023, FTX EU followed suit.
Customers will be entitled to withdraw their balance (in fiat currency) segregated in designated customer accounts, with the new website requiring users to reset their existing passwords and generate new ones for the withdrawal site. FTX EU’s website is authorised and regulated by the Cyprus Securities and Exchange Commission.
Only customers who have undergone AML and KYC verifications and received email notifications regarding the withdrawal process are able to apply for withdrawals. Customers who have not sufficiently verified their bank or other account details provided may expect a delay in the withdrawal process.
FTX EU has indicated that it would provide customers with a statement of their entitled fiat currency fund balances in compliance with Cyprus law. Nonetheless, some business partners may not be eligible for withdrawals.
Cryptocurrency exchanges face regulatory scrutiny worldwide, and Cyprus’s authorities have recently stepped up their oversight of the sector. Recently, the country’s authorities have issued penalties to cryptocurrency trading companies for non-compliance.
Cyprus’ central bank also issued guidelines last year for the operation of cryptocurrency businesses, urging virtual asset service providers (VASPs) to register their operations with the country’s authorities. In addition, VASPs were required to conduct KYC checks on customers and report suspicious transactions, according to the guidelines.
FTX EU’s withdrawal process compliance with regulatory guidelines is likely to be welcomed by authorities as it reinforces the importance of responsible business practices, which also benefits customers who can have greater confidence in their investments.
