CySEC Withdraws Daweda Exchange’s License

As the Cyprus Securities and Exchange Commission (CySEC) continues its crackdown, it has withdrawn the Cyprus Investment Firm (CIF) license of Daweda Exchange Ltd for non-compliance of the jurisdiction laws.

The decision to “wholly withdraw” the broker’s license took effect on July 15 as Daweda “did not act honestly, fairly and professionally when providing investment services to clients, in accordance with the best interests of its clients.”

The Cypriot watchdog also accused that the company did not take the necessary steps to safeguard the privately-owned URL (domain) of www.daweda.com, from being used by Daweda Ltd (BVI).

“Daweda Ltd (BVI) and Daweda Exchange Ltd do not belong in the same group of companies,” the official press release pointed out.

According to the 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, the Daweda Ltd (BVI) was using the email address account@dawedafx.com, to send its clients their login ID and password information to connect to the MT4, thus giving the impression that they were clients of the Cyprus Investment Firm Daweda Exchange Ltd.

The watchdog keeping a keen eye

The financial market regulator also put a temporary six months ban on two board members of the company - Hamed Sepasdar Tehran and James Cabrera - from taking any management positions in CIFs.

“...at the material time and while they were members of the board of directors of the Company, they did not define the governance arrangements that ensure the effective and prudent management of the CIF, in a manner that promotes the integrity of the market and the interest of clients,” the official notice noted. “In particular, they did not comply with the principle of article 10(1)(b)(iv) of the Law, since they did not supervise effectively the senior management of the Company.”

Daweda Exchange’s license was also suspended by CySEC last December, citing non-compliance with regulatory standards.

Meanwhile, the CySEC returned the licenses of two temporarily banned Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term brokers - F1 Markets and Magnum FX (Cyprus), Finance Magnates reported earlier today.