Belize’s financial watchdog (IFSC) on Thursday issued a string of warnings alerting investors of the recent spate of unregulated FX and binary options brokers.
The newly-blacklisted firms work differently across various industries, but generally, some of them pretend to be registered with the agency or copy authorized firms’ branding and logo on their website.
The watchdog warned users who had trusted the firms with their investments that they might not recover their deposits.
The IFSC agency has updated its blacklist to include the following brands: OptimaFX Global Investment LTD, which is using a fraudulent license No: IFSC/60/345/APM/18, and claims to be based out of New York. The second flagged broker called ‘UZMAN FX LLC’ which is also falsely claiming to hold International Business Company registration in Belize while not actually licensed by the commission or any other competent authority in the country.
2020 Global Market Outlook: How the “Known Unknowns” Can Affect CurrenciesGo to article >>
Due to the illegal nature of its conduct, the online trading firms have been instructed by the IFSC to cease and desist from providing financial services and engaging in finance-oriented activities. Offering such services in this manner is a violation of the law in Belize.
Earlier this year, Belize’s financial watchdog (IFSC) issued a list of asset managers, FX, and binary options brokers that are no longer licensed by the International Financial Services Commission.
Should these firms continue providing professional investment services to domestic clients without proper authorization, the practice will be considered a criminal offense. According to the regulatory manifest, however, there is no one-size-fits-all reasoning that the IFSC gives for lapsing these licenses.
The Belizean regulator has experienced its share of unlicensed firms operating within its jurisdiction. As the financial world continues to adapt to the growing demand for cryptocurrencies, many institutions are making the necessary adjustments. The IFSC is no exception, as the authority has already begun to monitor and assess crypto companies and their respective activity.
Finance Magnates previously reported that the IFSC had issued a warning regarding unauthorized cryptocurrency promoter and brokerage OneLife Network.