The Cyprus Securities and Exchange Commission (CySEC) updated its warning list this week to include six online platforms that offer unauthorised trading products.
In the warning, the Cypriot regulator provides the company’s name, website address and states that the entity is not entered in its regulatory register.
Among the companies added to the list is Fin-Target Ltd, which falsely claims association with Cysec-regulated broker, Royal Forex Ltd. The company operates a forex and cryptocurrency platform but reportedly operates in Spain without a license.
Another company added to the Cysec’s warning list is Coinboost247, also known as Crytofxetra247, for operating in Cyprus without a license. This company is involved in the trading of contracts for difference (CFD) tracking cryptocurrencies, commodities and forex.
Moreover, Crytofxetra247 claims to be regulated by the CFTC, the IFSC of Belize, as well as the Cyprus Securities and Exchange Commission.
Bitcoin: Can it Hit 100k in 2021?Go to article >>
Under current laws, CySEC has no powers to force internet companies to refuse financial advertisements or block access to their domains. It can only ask them to take down fraudulent promotions once they have been spotted. As a result, fraudsters and promoters of high-risk schemes have been able to place advertisements claiming to be based or licensed in Cyprus.
Cysec stresses that these firms are not licensed to operate a brokerage business in Cyprus, nor are they affiliated with a regulated entity. Additionally, 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 was unable to meet its financial obligations.
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.