Alert! Cyprus Watchdog Adds New FX Brands to Blacklist

CySEC said, previously it believed such companies were based overseas and providing false addresses

The Cyprus regulator CySEC has earlier today warned investors that the websites listed below do not belong to an entity authorised to provide investment services in the country.

Earlier in August, CySec issued a warning to potential investors explaining that eight brokerage firms were not licensed to operate within its jurisdiction. The list included elite-fxmarket.com, bigliquidity.com, avafinancials.com, pfcapfx.com, reset-invest.com, reliabletradeoptions.com, prcbrokers.com and prc-brokers.com.

Always Consult CySEC Registry First

The Cyprus Securities and Exchange Commission (CySEC) once again urged investors to consult its official website before conducting business with investment firms. This, according to the watchdog, ascertains the brokers they deal with have been granted an authorization for the provision of investment services.

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CySEC said before that some of these illegal brokers were just spinoffs of previously shuttered companies while others misleadingly claim affiliation with other brokers that are already regulated in Cyprus and hold its CIF License.

And, it warns that if consumers lost their money on platforms that are not licensed, they are not protected under the Investor Compensation Fund (ICF). This serves to protect the claims of covered clients and provide them with compensation, in case a member could not meet its financial obligations. Earlier last year, CySEC changed the maximum compensation for valid claims to be either 90 percent of the cumulative covered claims or €20.000, whichever is lower.

While many providers claim to be Cyprus-based, CySEC said, previously it believed such companies were based overseas and providing false addresses, adding that it would look into taking further action if companies were actually based within the country. It further explains that it is sometimes hard to find the names of the platforms’ operators on their websites, and that the addresses given as the company headquarters are often offshore letterbox addresses.

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