FTX, a major cryptocurrency exchange, announced on Monday it is launching a new European affiliate- FTX Europe, as part of efforts to establish its business in the continent.
The exchange made such an announcement after securing approval from Cyprus’ financial regulator CySec. Following the approval, FTX Europe will start serving users across Europe.
FTX Europe is the second affiliate of the FTX crypto exchange. In May 2019, the exchange launched its American affiliate, FTX US.
FTX said that it would begin offering its products to European customers through a licensed investment company with accreditable licenses across the European economic area. The new entity will be headquartered in Switzerland, with an additional base in Cyprus.
Patrick Gruhn, a partner at the Swiss legal firm Crypto Lawyers LLC, will be the head of FTX Europe. Gruhn talked about the new development and said: “Europeans will now be able to use FTX’s best-in-class trading platform to invest in a wide range of cryptocurrencies derivatives thru a regulated investment firm.”
Meanwhile, Sam Bankman-Fried, the CEO and founder of FTX exchange, also commented about the business development and stated: “As we continue to grow, we are constantly looking at opportunities to become appropriately licensed and regulated in every market we enter. We’ll be interacting with regulators in various countries across Europe to continue to provide a safe and secure environment for people to trade crypto.”
Global Expansion into Emerging Markets
Founded in 2019, FTX is a Bahamas-based exchange that offers derivatives products as well as spot trading. In October last year, the exchange raised $420 million in a funding round with participation from top investors, including the Ontario Teachers’ Pension Plan Board, Temasek, Sequoia Capital, Sea Capital, IVP, ICONIQ Growth, Tiger Global, BlackRock, Ribbit Capital, and Lightspeed Venture Partners. FTX planned to use the funding to expand its product offerings and push it into new markets worldwide.
FTX’s US, the American subsidiary of crypto exchange FTX, has captured attention after growing its user base to 1 million. Last month, FTX’s US announced plans to add stock trading to its platform and therefore set a pace to compete with the likes of Robinhood. FTX has been planning to add features that would enable traders to view company fundamentals on their screens, see up-to-date price quotes, and track their portfolio performance.