- CySEC cracks the whip on unauthorized brokers
- Some providers offered false addresses and claims of being based overseas
- XTrade Europe Ltd and Libertex fined €200,000 and €160,000 respectively
After months of hiatus, the Cyprus Securities Exchange has flexed its muscles and cracked the whip on unauthorized brokers with compliance irregularities.
CySEC blacklists five sites offering authorized investment products
On Thursday, CySEC published a warning informing investors regarding five entities that were operating FX and crypto trading illegally. The Cypriot regulator indicated that the websites that have been blacklisted have been facilitating crypto, and Forex trading has been doing so without the authorization of doing so in the country.
The regulator indicated that the sites did not belong to entities given authorizations to provide investment services or/and conduct investment activates as per Article 5 of Law 87(I)/2017. Some of the brands have been misleading investors by claiming to have an affiliation to brokers that hold CIF License and regulated in Cyprus. Some of the domains blacklisted include grothwhandleleagcyukfx.com, 24bitx.com, concept4x.com, www.appolotraderxcoexcurrency.com, and www.CMliveExperts.com.
The CySEC indicated that most providers claimed to be Cyprus based, yet previously those companies were thought to be based overseas and provided false addresses. The regulator indicated that it will look into the matter and take action if it establishes that the companies were based in Cyprus. CySEC has urged investors to confirm with its site www.cysec.gov.cy before doing business with any investment company. This will help them ascertain if the firms are licensed to offer investment activities or services.
CySEC fines firms for irregularities and non-compliance
Recently the regulator fined Xtrade Europe Ltd around €200,000 because of issues with the firm’s anti-money laundering programs. The settlement with XTrade came days after it fined Libertex’s aren’t Indication Investment around €160,000. The Cypriot has continued its purge of noncomplying exchanges.
Similarly, some brokers have been suspended after they were found promoting risky products in the UK. The regulator cracked the whip after the UK regulator indicated that brands such as iTrader and TradeATF, 24optioon, F1Markets, and Magnum FX (Cyprus) were using fake celebrity endorsements for their risky products on social media.