CySEC Blacklists Ctrust, Moneсor, CardinalFx and FalconFxOption

CySEC says these firms are not licensed to operate a brokerage business in Cyprus, nor affiliated with a regulated entity.

The Cypriot regulator has warned against entering into transactions today, particularly involving CFDs, cryptocurrency and forex-trading, via online trading platforms operated by unlicensed providers.

The Cyprus Securities and Exchange Commission 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. The watchdog has blacklisted the following domains:

  • monecor.eu
  • ampglobalfx.com
  • cardinalfx.trade
  • falconfxoption.com
  • lab-finance.com
  • 24cryptofxtrade.com

One of the blacklisted brokers, Ctrust, claims to be licensed in Mauritius but says it operates in accordance with the requirements of the Cyprus Securities and Exchange Commission (license number: 224/56).

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Meanwhile, AMP Global touts itself as a New Zealand broker that was founded in 2014 and authorised by a mix of authorities in Europe. AMP Global alongside Moneсor Europe, Cardinal Fx and FalconFxOption brands also falsely claim to be properly regulated by CySEC, which the Cypriot watchdog has just denied.

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.

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