FINMA, the Swiss Financial Market Supervisory Authority, has updated its blacklist of companies that are illegally operating financial services targeting Swiss residents. FINMA’s warning list includes companies that it believes may be carrying out unauthorized and unsupervised financial services.
The newly-listed company is a multi-asset broker named Trade Capital Investments LTD. The Swiss authority located the company address via its website https://tradecapital.com which reveals that the firm is owned and operated by an undisclosed entity.
The FINMA has previously warned that the online trading industry had been flooded by offshore brokers armed with cheap technology and methods of online marketing learned from the poker industry. It also voiced concerns that standards need to be raised across Europe because firms that are typically lightly regulated jurisdictions can passport their services into Switzerland.
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Although the financial watchdog didn’t provide specific details, the inclusion of Trade Capital means it is not officially registered in Switzerland and was thus not authorized to offer its trading services to Swiss traders. In the ‘About Us’ section, the company refers to global offices. However, it didn’t claim any specific regulatory status in these jurisdictions.
Earlier this year, Finance Magnates reported that FINMA shut down a cryptocurrency racket as part of its latest efforts to tackle digital currency fraud. Per its latest edict, FINMA’s target was a fake cryptocurrency provider. The Swiss Financial Market Supervisory Authority is currently pursuing as many as twelve other cases amidst an uptick of fraud in the country.
According to a FINMA statement regarding the action, this activity is similar to the deposit-taking business of a bank and is illegal unless the company in question holds the relevant financial market license.