Swiss Blockchain Company, Lykke Willingly Hands Over CySEC License
As of Monday, November 18, 2019, Swiss-based Blockchain firm, Lykke has given up its Cyprus Investment Firm (CIF) license granted by the Cyprus Securities and Exchange Commission (CySEC) reports Finance Magnates. The decision to do so supposedly remains unclear as it was a voluntary move by the firm.
Lykke initially received approval from the CySEC back in 2018 to operate as a regulated Cyprus investment firm. Said move was done so that the firm can focus heavily on its digital assets’ aspect of the business. Months later, Lykke allegedly partnered with Amsterdam-based firm, Nxchange to launch a tokenized securities exchange. They’ve even conducted an ICO back in 2016, with the token having been integrated with Ethereum.
The interesting fact here is that Lykke chose to give up the license and that it was not a consequence of some regulatory action. Given the number of milestones achieved by the firm, one is surely to stop and wonder what might have gone wrong.
Although the firm no longer has the license and has since been disbarred from CySEC’s lifeboat scheme (with 10 other firms making the list), it can benefit from the Investor Compensation Fund (ICF) – described as a special fund for clients of Cyprus Investment Firms.
Here’s the original notice reflecting Lykke’s decision, shared by the CySEC:
“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.”