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FTX Did Not Have Permission To Take On Dutch Clients, Central Bank Says

Cryptocurrency trading platform FTX did not have a license to operate in the Netherlands, the country’s central bank (DNB) told As such, regulators have no idea how many residents in the country have fiat or digital currency affiliated with the company, which filed for Chapter 11 bankruptcy in the United States last week.

An updated filing filed on Tuesday noted that FTX may have one million creditors owing money. Research borrowed billions of dollars of client money Take risky leveraged trading from FTX. The New York Times reported, The amount was up to $10 billion.

So FTX can no longer pay users about $8 billionMany who had money stored on exchanges were unable to access their funds. Officially, the Dutch client should not have been recruited through marketing materials before FTX was registered with his DNB.

The FTX sell-off was sparked by the founder of rival exchange Binance. Changpeng Zhao announced on his Twitter that his company plans to liquidate its holdings of the FTX token, FTT, “due to recent revelations.” This triggered FTX customers to start withdrawing funds from the exchange. Zhao then started talks to acquire his FTX, but it fell through during due diligence, raising investor concerns.

It is not yet known how many Dutch residents will be affected by the FTX collapse. According to a recent survey, Around 1.9 million Dutch trade cryptocurrenciesIn total they have invested an estimated €2.2 billion. In general, people over the age of 50 invest an average of around €1,360, while young adults invest an average of around €1,140.

The DNB told, “But we know that some people deposit much more. Currently, the regulator has been involved in 23 different investigations into allegations of misconduct at cryptocurrency companies. Six of them have led to changes in company procedures.”But some companies don’t care,” said DNB’s Steven Maijoor.

Binance, the world’s largest cryptocurrency exchange, was also fined by DNB in ​​July. The company failed to register with Dutch authorities, which the DNB said was a “very serious” violation. He fined the company 3.3 million euros. He also issued a non-compliance warning to Binance in August 2021 on this matter.

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