Just like the Phoenix rising from the ashes so might be the owners of Crown Forex, which is now in liquidation process. There has been much rumour going on that the owner of Crown Forex might also be the owner the relatively newly established FX Pulp. FX Pulp is registered in Cyprus and splashes a lot of cash on advertisement recently.
Crown Forex, as you might remember, is a Swiss Forex broker which was shut down by FINMA due to some irregularities. The case went to court which decided to liquidate the company.
Two months ago, on June 4th, Chris and Patrick were kind enough to comment (scroll up) on my post about FX Pulp saying that Crown Forex and FX Pulp shared the same owner.
So if you had a profitable company which was shut down, why not just open another one?
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I reviewed some of FX Pulp’s promotions a while ago warning traders that they might face bigger losses than their initial deposit.
Francesc from fxstreet issued a warning following these rumours – his marketing department sent an email to FX Pulp execs asking for clarifications regarding the ownership. I’m not sure however that this can be traced at all – as some offshore Forex companies keep their shareholders’ identities close to the chest, while execs are just front men.
It remains to be seen whether FX Pulp will issue an official statement (I doubt) regarding its ownership but the real problem is not Crown Forex or FX Pulp. The problem is the lack of transparency in this market and easiness with which Forex brokers are established and shut down. I claimed yesterday that 2009 is the year of regulation but it is still early for the Forex market to become a completely safe and transparent place for traders. It will also take ages for regulation to mature in the currently booming markets in the Middle East and Asia – until then the local traders are exposed to plenty of risks.
Crown Forex’s site is down, but you can read the latest FINMA updates here: http://www.crownforex.info/