CySEC Temporarily Suspends CIF License of Daweda Exchange

The Cyprus Financial regulator CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term has just informed the public that it handed down a suspension on the Cyprus Investment Firm (CIF) license of Daweda Exchange Limited, according to a decision being made at the regulator’s last meeting.

Daweda Exchange, which holds registration number 289/16, had its license temporarily suspended after CySEC raised concerns over its practices that the watchdog deemed potentially not compliant with regulatory standards.

Daweda is a CySEC regulated Forex brokerage firm since 2016, owned by Daweda Exchange Limited. The company had originally built its own custom Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term for binary options but then changed its focus to forex and CFD trading. Daweda abounded its binary bets offering though it introduced some innovative products at this time, including a P2P execution model where options buyers and sellers act as counterparties, and also launched automated trading features.

In particular, the broker was flagged for non-compliance with section 22(1), which concerns “the appropriateness of its shareholders.”

CySEC imposed the punitive measures as the aforementioned violations may endanger the company’s clients’ interests or “the regular operation of the capital market.”

Daweda is obliged to take action within 21 days to comply with the necessary provisions then apply to reactivate their license once more. But while the license suspension is in force, the company is not permitted to enter into a business relationship with any person, accept any new customer, or provide any services.

In addition, Daweda must, if existing clients so wish, close any open positions about clients’ contracts (on time or earlier if the client wishes so). It will also be required to return to existing clients all of their funds and profits earned if the clients want to do so.

In the meantime, Daweda has to upload notices regarding the suspension of its license onto all of its sites, which in this case, has yet to take effect.