The Cyprus Securities and Exchange Commission (CySEC) has continued to flag unauthorized financial service providers and published a fresh list of such platforms.
In its announcement on Friday, the regulator red flagged six platforms: winicoin.com, fxviewinvestment.com, enormoustradeharvest.com, marketsocta.com, colmex24.net, and tradingmasterclass77.com.
These platforms are not operated by any of the entities that received authorization from CySEC or other relevant regulators. All the flagged platforms are offering counterparty trading services with multiple asset classes. Many of them are highlighting forex and cryptocurrency trading as these two attract most of the retail traders’ attention.
With no license in hand, these platforms are operating illegally and traders are likely to lose all their deposits. Two of the flagged platforms is even resembling other legitimate forex and CFDs brokers, while one is even falsely claiming that it is licensed by the CySEC.
Increasing Investment Scams
Investment scams are rampant across the globe. It pushed regulators like CySEC to actively monitor the financial services industry within their jurisdiction and maintain a list of blacklisted platforms.
Earlier, the Cypriot regulator even has to warn against imposters who are disguising themselves as regulatory representatives, trying to solicit investors for fees in exchange for the settlement of bogus compensation claims. It also has to clarify the lack of its jurisdiction in taking money directly from investors to settle their claims with brokers.
Meanwhile, the regulator also made its grip stronger on the regulated entities. It is actively taking action against companies for lapses in compliance and mostly slapping monetary fines on them.
The actions against non-compliance also eventually led to the withdrawal of the Cyprus Investment Firm (CIF) license of several brokerage operators. The regulator recently initiated the compensation proceedings of Maxigrid clients under its compensation scheme months after the broker lost its license.
This article was written by Arnab Shome at www.financemagnates.com.RegulationRead More
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