The International Financial Services Commission of Belize (IFSC) today issued a warning against two investment providers purporting to be registered in the country. The Belize watchdog warned that ‘Club Fast Coin’ and ‘TRADEEX LTD’ are falsely claiming to hold an International Business Company registration in Belize while they are not licensed by IFSC or any other competent authority in the country.
Specifically, the IFSC warned that a company calling itself ‘TRADEEX LTD’ is posting on its website a Certificate of Incorporation No.147,333 carrying its name and purporting to be incorporated in Belize, yet this certificate is a “complete forgery,” the watchdog says.
According to the Belize’s IFSC, all persons concerned should exercise extreme caution and take note, as the aforementioned entity is also fraudulently claiming to hold a trading licence in financial and commodity-based derivative instruments and other securities licence.
Typically, alleged scam entities in scenarios like this may deny the accusations and make up excuses, perhaps that it was an administrative error, but in this case the company plus listing on its website the regulatory status, it also provides a link to a copy of its alleged IFSC license which could be seen below.
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The Belize regulator has also blacklisted ‘Club Fast Coin’, which operates through https://www.clubfastcoin.com, and according to its website invests in several trading products including forex and stocks, as well as indices and commodities. However, it’s not clear how many clients may be affected by the firm which has already been cited today for forgery over its regulatory status.
Finance Magnates reported on Belize’s financial services regulator back in February when the IFSC unfolded its plans to begin the enforcement of new capital requirements for registered derivatives brokers. The step comes nearly 14 months since the issuance of the ‘Licensing Amendment Regulation’ in late 2015.
The commission said in a circular to stakeholders that all companies holding a license for trading in financial and commodity-based derivative instruments and other securities or license for trading in foreign exchange must provide evidence of statutory capital increase of up to 500,000 US dollars.
The increase concerns the brokerage firms operating in forex, options, futures, contracts for differences (CFDs), shares, stocks and interest rates. Prior to the hike, the minimum required capital was $100,000.