The Cyprus Securities and Exchange Commision (CySEC) has made a new announcement on its warning list. This time it is against ECN Capital Ltd, with the securities regulator warning that it is not an authorized entity.
Specifically, CySEC has warned that the website www.ecncapital.com “does 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.”
Taking a look at its website, ECN Capital claims to be a social trading foreign exchange (forex) brokerage. According to its website, the company was established in 2011 by two Swiss capital market experts with a combined 15 years worth of investment experience.
On its website, ECN Capital claims to be associated with Moslok Ltd, with its registered office at Spyros Kyprianou Street, 4004, Limassol, Cyprus. You can see the original warning from CySEC here.
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Another day, another scam
Financial regulators often warn consumers about companies that are acting without a license, are conducting a scam, or entities that are illegally using the details of a regulated firm to trick people into parting with hard earned cash.
These scams are not uncommon in the financial industry, unfortunately as technology grows, fraudsters are getting more and more cunning. Only yesterday, Finance Magnates reported that the Financial Conduct Authority has flagged World Techno Trade, a clone firm of True Trade Limited.
On Monday, the Australian Securities and Investments Commission (ASIC) added a whopping ten warnings onto its website against forex and cryptocurrency brokers as well as other types of investment firms.
Because of this CySEC urges residents of Cyprus to consult the warning section of its website before conducting business with investment firms. This is so you can check which entities are licensed and legitimate and which have been flagged by the regulator as suspicious and avoid.