The Cyprus Securities and Exchange Commission (CySEC) confirmed on Monday that the multi-asset brokerage Starfish Markets (CY) Ltd., trading as Starfish FX, has renounced its Cyprus Investment Firm (CIF) License, as of September 30, 2016.
The regulatory action comes amidst a sustained crackdown on unregulated and less-than-reputable brokers operating in Cyprus, as the regulator attempts to protect customers from unlicensed brokers that exhibit predatory practices.
Although CySEC didn’t clearly state why Starfish FX has decided to say goodbye to its license, the Cypriot watchdog already warned against the company earlier this year after it received information and complaints that Starish Markets unlawfully began providing financial services. Most likely, the investigation into allegations of Starfish Markets commencing operations before the activation of its license has prompted the regulator to lapse its authorization number 286/15.
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The broker received in December 2015 a Cypriot Investment Firm (CIF) license from CySEC, but it has not been activated yet. Pending the company’s compliance with the conditions set by CySEC, it wasn’t authorised to provide any investment services to investors or receive client money and/or financial instruments.
Starfish Markets Limited is an online brokerage based in New Zealand and focused on the Asian markets, offering forex and binary options solutions to both retail and institutional clients. Starfish Markets Limited is registered in New Zealand to provide Financial Services (FSP272925) and is part of the New Zealand Financial Dispute Resolution Program .
A visit to the broker’s website reveals that Starfish FX has already proceeded with changes in its website to remove any references regarding authorization and supervision of the company by CySEC.
Finance Magnates reported on Starfish FX earlier in April when the Financial Commission (FinaCom PLC), an industry-specific dispute resolution service that caters to the financial services industry, added the brand to its growing membership.