Embattled FTX is facing the suspension of its licence by the Cyprus Securities and Exchange Commission, revoking its ability to continue trading within the European Economic Area.
According to reports the decision could be announced on Friday, following a week of turmoil for the exchange which collapsed in dramatic fashion after experiencing a liquidity crunch.
The firm secured a CySEC license to operate as a Cyprus investment firm in September, allowing it to operate across the entire European Economic Area, including the EU as well as Iceland, Liechtenstein and Norway.
Earlier in the week Binance considered a takeover of its competitor, however backed out of acquisition talks after it emerged that FTX is grappling with multi billion dollar balance sheet losses. The founder and CEO used Twitter to apologise and explain his efforts to secure rescue financing, and is also facing investigation by authorities in the US.