The SFO denied suggestions that this signalled the beginning of the end of its investigation into his role in the 2008 collapse of the Icelandic Kaupthing bank.
"The bail was due for renewal later this month. However we considered that continued bail added nothing to the ongoing investigation so there were no compelling grounds to renew bail," the organisation said.
"We stated in July that we were continuing with the investigation and this remains the situation. The decision to release suspects from bail is not the same as changing their status."
Tchenguiz was informed of the decision on Thursday, which means he can now travel abroad without informing police.
In June the SFO dropped a parallel investigation into the actions of his older brother Vincent after admitting that it misinterpreted key evidence.
Vincent Tchenguiz has since threatened to sue the SFO for £100m in damages.