The Cyprus Securities and Exchange Commission has once again stepped up its fight against unauthorized brokers. The Cypriot regulator today published a warning against four FX brands, which were just blacklisted after they were found facilitating trading in FX and cryptocurrencies without being authorized to do so in the country.
Nervic Fx Trade, Crypt Fx Tm, Urban Fx Trade, and Intense Fx Trade are the latest to be added to the CySEC’s caution list. These brands are also misleadingly claiming affiliation with Bdswiss Holding Plc, which is already regulated in Cyprus and holds its CIF License.
Finance Magnates contacted Bdswiss for comment, and the company has just released the following statement:
“BDSwiss has established an internal process over the years and we are alerted both by professional software as well as by clients themselves on clone websites or third parties using our brand name for fraud. BDSwiss’ Compliance department maintains constant communication with the regulators and takes immediate action, reporting fraudulence and clone websites whenever they come to our attention. As the BDSwiss Group grows a stronger market presence, fraudulent activity has also been on the rise with third parties abusing our brand name and even copying our websites and channels entirely; thus we caution all clients and those interested in trading with BDSwiss to beware of clone sites and to remember that BDSwiss representatives will provide support only via official company channels and emails. We would also urge clients to keep all sensitive information such as usernames and passwords strictly private and never conduct deposit transactions on third party websites. If in any doubt, clients should always contact us via our official channels and refer to our Abuse Warning for a full list of all the BDSwiss clone sites and individuals abusing BDSwiss’ brand name.”
The primary financial services regulator in Cyprus has also warned against a company called eMarketsTrade, which operates a mix of pure cryptocurrency and FX business.
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While many providers claim to be Cyprus-based, the 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.
Crypto platforms face tighter AML rules
The Cypriot watchdog has recently revealed new details about its efforts to regulate crypto assets, hinting more discussions might already be underway. The CySEC wants to increase oversight of cryptocurrencies and related assets by integrating EU anti-money-laundering rules into the Cypriot laws.
Derivatives referencing crypto assets would not fall under this suggestion, but we understand they remain subject to ESMA’s current restriction and any future proposals by the CySEC regarding the sale of these instruments to retail investors.
Published in June 2018, the AMLD5 is a pan-European anti-money laundering directive that member states will have until January 2020 to implement it into their national laws. The legislation is notable because it represents the EU’s first attempt to expressly regulate cryptocurrency activities at EU-level.
Meanwhile, the CySEC intends to go beyond the requirements set out in the fifth directive as it wants to bring new activities, which are not included in AMLD5, under the AML/CFT obligations.