Cryptocurrency startup Lykke has voluntarily surrendered its Cyprus license. The firm, which offered a crypto exchange and wallet, has been regulated by the Cyprus Securities and Exchanges Commission (CySEC) for over a year now. However, according to a notice by the regulator, Lykke has decided to surrender the license.
Lykke is a Swiss company that offers a crypto trading platform, allowing its users to easily buy, sell and store crypto. The firm received a European Investment Firm License from CySEC in July 2018, allowing it to operate as a regulated Cyprus Investment Firm. The licensing required the firm to adhere to strict financial standards including the segregation and protection of client funds, full transparency of its business operations and capital adequacy controls.
However, as revealed by Finance Magnates, the firm has decided to surrender the license. It hasn’t made clear what led to the decision. Lykke hasn’t been involved in any misconduct, nor has it been under investigation by CySEC or any other regulatory body.
CySEC revealed the company’s decision in a notice, stating:
“The Cyprus Securities and Exchange Commission announces that, on its meeting of 18 th November 2019, has decided, pursuant to section 8(1)(a) of the Investment Services and Activities and Regulated Markets Law of 2017 and section 4(7) of Directive DI87-05, to withdraw the Cyprus Investment Firm authorisation with Number 363/18 of Lykke Cyprus Ltd (‘the Company’), due to the Company’s decision to expressly renounce it.”
Lykke started operations in 2013, offering an easy-to-use crypto trading platform. The company has continued to grow over the years, raising $4.8 million from investors. In 2016, the company issued an ICO, raising $6 million.
Based in the crypto valley of Zug in Switzerland, Lykke partnered with Nxchange, a regulated Dutch securities exchange to offer a tokenized securities exchange in November last year. The partnership allowed the tokenization of various types of assets and securities including bonds, equities, investment products, loans and more.
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