Myfxbook, an automated analytical tool and social trading network, has had its Cyprus Investment Firm (CIF) license revoked by the Cyprus Securities and Exchange Commission (CySEC), as it was not used within twelve months from the date of its issue, according to a recent regulatory filing.
As of October 30th, 2015, and pursuant to section 24(1)(a) of the Investment Services and Activities and Regulated Markets Law of 2007, the CIF authorisation of ”Myfxbook Ltd” with number 255/14 has lapsed.
Myfxbook is an online automated analytical tool for forex trading and a social forex community enabling its users to track, compare, analyze and share their trading activity, currently supporting over 100 brokers and most popular platforms. In 2014, the forex community portal obtained its CIF license from CySEC, under a new entity called Myfxbook Europe Ltd. The licensing, which followed a trend of social platform providers to operate regulated entities themselves, included “portfolio management” and “reception and transmission of orders”, which are required for the company to provide its social trading services.
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The move was considered a precautionary measure after the UK Financial Conduct Authority (FCA) reported that it is looking for ways to regulate trade leaders as financial advisers.
According to CySEC rules and regulations, if an authorized CIF firm does not start providing investment services within 12 months of the date of its CIF issuance, then its license lapses automatically. Although the lapse is an ‘automatic’ step and is not a disciplinary action, the Cypriot watchdog announced the updated regulatory status of Myfxbook only on July 7th, 2016, i.e. after nearly 8 months.
Finance Magnates reported earlier in Febraury when Myfxbook launched its new forex rebate service, called PAYBACKFX, which helps securely back all withdrawals, whilst redistributing rebates garnered from trades via brokers. The fundamental aim of the new service was to foster support between traders and Myfxbook, which will help offer the most transparent and timely withdrawals.