CySEC (Cyprus Securities and Exchange Commission) issued a list of unauthorized companies on Wednesday, with five unregulated websites being added to its warning list. According to the regulator, none of these entities are Cypriot Investment Firms (CIFs).
CySEC Flags Illegal Trading Platforms
"The Cyprus Securities and Exchange Commission wishes to inform investors that the following websites do not belong to an entity which has been granted an authorization for the provision of investment services and/or the performance of investment activities, as provided for in Article 5 of Law 87 (I)/2017," the regulator commented.
The illegal platforms are metexo.com, inforexeu.com, et-fx.com, nbimarkets.com and emporiumcapital.ltd. Currently, only the inforexeu.com website is not responding while the others continue to encourage investment.
The platforms that CySEC is warning against offer access to high-risk trading products, including forex, CFDs, cryptocurrencies and other popular asset classes. Some additionally provide wealth management services and the ability to invest in the stock market. The leverage offered in some cases exceeds the maximum values allowed under current European regulations.
Check out the recent London Summit session on the future of regulations in 2023.
Alert List Grows for Unregulated Brokers
Cyprus is a popular location for CFD brokers, allowing them to operate throughout the European Economic Area. For this reason, many fraudulent companies are trying to claim that they have CySEC licenses to increase their reliability in the eyes of investors.
CySEC and other European regulators are waging a constant battle against rogue platforms. However, in the place of the old, a new one appears, and the ability to identify them often depends on the help of investors themselves. That is why the Cypriot regulator keeps reminding traders to report all potential attempts to violate regulations or commit a crime.
The Cypriot regulator persistently updates its list of suspicious platforms. Additionally, it has to contend with entities that try to impersonate the regulator, its employees and its official website.
Other regulators from European countries frequently update their warning lists. Among the most active are Spain's CNMV, Italy's Consob and UK's FCA. Consob recently reported blocking four more illegal investment platforms.
