CySEC Sounds Regulation Alarm on Three FX and Crypto Brokers

While many claim to be Cyprus-based, the CySEC believes such companies were based overseas and providing false addresses.

The Cyprus Securities and Exchange Commission has once again stepped up its fight against unauthorized brokers. The Cypriot regulator today published a warning against Naga-Markets.online, (Not associated with Naga Markets Ltd) CALIBUR CAPITAL, and IcFxMarkets, which were just blacklisted for facilitating trading in FX and cryptocurrencies without being authorized to do so in the country.

The CySEC added that some of these brands are misleadingly claiming affiliation other brokers that are already regulated in Cyprus and hold its CIF License. The watchdog has blacklisted the following domains:

 naga-markets.online

 icfxmarkets.com

 caliburcapital.net

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.

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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.

Crypto platforms face tighter AML rules

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.

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.

Earlier in November, the Cypriot regulator excluded 11 trading brands from its lifeboat scheme. The list includes some now-defunct FX brokers, including UBFS InvestSpot Capital Markets Ltd, and Alfa-Forex, which in 2019 shut down its services to retail customers in Europe.

Also earlier last year, the CySEC warned of fraudsters that are claiming to be representatives of the regulator in an attempt to solicit personal information from consumers and scam investors.

According to a statement released by the Securities regulator, the fraudsters are claiming to be officers or appointed representatives of CySEC. By doing this, they are trying to scam investors into paying fees in exchange for the settlement of fraudulent compensation claims.

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