Exclusive: Tradologic Group Acquires an EU-Regulated Subsidiary for Its Clients
- The new subsidiary is regulated by the Bulgarian Financial Supervision Commission.
Tradologic Group is opening the doors to a new regulatory jurisdiction for its clients that wish to to offer CFDs and Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw . The company has acquired the Bulgarian brokerage company FINEX, joining the trend of regulated firms being acquired by foreign entities.
The deal will enable the clients of Tradologic’s Krypton Software cryptocurrency-centered subsidiary to offer a regulated solution to the market.
[gptAdvertisement]
The news comes as the CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision regulatory regime appears to be faltering for some parts of the industry. The Cypriot regulator has recently tightened the screws on local companies and is demanding a slew of new compliance procedures from Cyprus Investment Firms (CIFs).
The Bulgarian Financial Supervision Commission (FSC) has been mainly involved in the regulation of brokers that are focused on the local market. That said, under European passporting rules the Bulgarian license can be used to onboard clients in other countries.
Commenting on the deal to Finance Magnates, the CEO of Tradologic Group, Michael Golod, said: “The license allows brokers to operate in the EU under the supervision of FSC. It can be passported to a number of other EU countries.”
Asked about the reasons why the firm chose to acquire an already regulated subsidiary instead of applying for a license itself, Mr. Golod elaborated: “Obtaining a financial services license is a long and costly procedure, often taking more than a year. Currently, there is a huge demand for an EU alternative of CySEC and the Bulgarian Financial Service Commission happens to offer one.”
“We decided to acquire FINEX mostly because we can start providing a license umbrella right away, it’s a very dynamic industry and time is precious. Besides, the company already has 3 years of history, excellent relationship with the regulator and the expertise that our brokers need to be compliant,” Mr. Golod explained.
A Rising Trend in Bulgaria
Sources with knowledge of the matter confirmed to Finance Magnates that several other companies from the industry have acquired Bulgarian regulated subsidiaries. Apparently, the most secure and cost-effective way to get regulated in the country is to purchase an entity that has already been granted an operating license by the FSC.
Bulgaria doesn’t have a reputation for being a popular destination for brokers. The watchdog has been vigilant about granting new licenses, especially for companies that are setting up a subsidiary for the sole purpose of having an EU-regulated entity for passporting. The FSC has denied several license applications from industry players over the past year, including one from Plus500.
Tradologic Group is opening the doors to a new regulatory jurisdiction for its clients that wish to to offer CFDs and Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw . The company has acquired the Bulgarian brokerage company FINEX, joining the trend of regulated firms being acquired by foreign entities.
The deal will enable the clients of Tradologic’s Krypton Software cryptocurrency-centered subsidiary to offer a regulated solution to the market.
[gptAdvertisement]
The news comes as the CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision regulatory regime appears to be faltering for some parts of the industry. The Cypriot regulator has recently tightened the screws on local companies and is demanding a slew of new compliance procedures from Cyprus Investment Firms (CIFs).
The Bulgarian Financial Supervision Commission (FSC) has been mainly involved in the regulation of brokers that are focused on the local market. That said, under European passporting rules the Bulgarian license can be used to onboard clients in other countries.
Commenting on the deal to Finance Magnates, the CEO of Tradologic Group, Michael Golod, said: “The license allows brokers to operate in the EU under the supervision of FSC. It can be passported to a number of other EU countries.”
Asked about the reasons why the firm chose to acquire an already regulated subsidiary instead of applying for a license itself, Mr. Golod elaborated: “Obtaining a financial services license is a long and costly procedure, often taking more than a year. Currently, there is a huge demand for an EU alternative of CySEC and the Bulgarian Financial Service Commission happens to offer one.”
“We decided to acquire FINEX mostly because we can start providing a license umbrella right away, it’s a very dynamic industry and time is precious. Besides, the company already has 3 years of history, excellent relationship with the regulator and the expertise that our brokers need to be compliant,” Mr. Golod explained.
A Rising Trend in Bulgaria
Sources with knowledge of the matter confirmed to Finance Magnates that several other companies from the industry have acquired Bulgarian regulated subsidiaries. Apparently, the most secure and cost-effective way to get regulated in the country is to purchase an entity that has already been granted an operating license by the FSC.
Bulgaria doesn’t have a reputation for being a popular destination for brokers. The watchdog has been vigilant about granting new licenses, especially for companies that are setting up a subsidiary for the sole purpose of having an EU-regulated entity for passporting. The FSC has denied several license applications from industry players over the past year, including one from Plus500.