The Cyprus Securities and Exchange Commission (CySEC) has officially withdrawn its CIF license from CommexFX Ltd, a provider of foreign exchange (FX) and contracts-for-difference (CFDs), the group’s latest chapter in a series of fines and penalties spanning over two years.
CySEC’s latest action results in the full withdrawal of CommexFX’s CIF license, following multiple failures to comply with its policy and several transgressions that have endangered client funds and interests. CommexFX had previously operated mainly in Egypt and China as well as other Asian markets.
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Following a judicial review at CySEC, CommexFX Ltd. (CIF number 153/11) is no longer licensed by the regulator. The group initially ran into issues with CySEC back in late 2015 when it was suspected of endangering client funds. More specifically, these entailed alleged violations for possible non-compliance with the Law: ‘Operational requirements – Clients’ funds’, as specialized in a Directive, ‘Safeguarding of clients’ funds’ – this led to a fine of €100,000.
Last June, matters did not improve for CommexFX, as it was slapped with a second court date and a fine of €100,000. Additionally, speculation abounded that the group was offering its services to US clients. CommexFX had attempted to clarify on its website – now inactive – that it did not provide brokerage services for citizens of the United States of America.”
CySEC’s latest edict looks to close the door on CommexFX, namely in terms of its prospects for operating as a licensed CIF.