Spain Issues Red Alert on 18 Unregistered Investment Firms

by Damian Chmiel
  • CNMV warns against a new batch of unauthorized companies offering investment services.
  • The regulator has recently enforced additional limitations on FX/CFDs products.
Spain
Bloomberg

The National Securities Market Commission (CNMV) of Spain has released a statement today (Monday) warning investors about 18 investment companies that are not registered to operate in Spain.

These unregistered firms do not have authorization from the CNMV to provide investment services or engage in activities under the Commission's supervision.

CNMV Issues Warnings on 18 Unregistered Investment Firms

The full list of companies that received warnings from the CNMV includes a mix of FX/CFDs and crypto companies. The CNMV has urged investors to exercise caution when approached by any unregistered firms offering investment services in Spain.

The updated warning list includes:

  • toptiercapital.org (Top Tier Capital),
  • bitbinx.ltd and bitbinx.com (Bitbinx),
  • cryptomaxitrade.com (CryptoMaxiTrade LTD),
  • innovativefxtrade.com (InnovativeFX Trade),
  • globgraph.com/es (SIF - Swiss Investments Funds),
  • maxbreadinx.com (Breadinx),
  • universaltrade.io (Universal Trade),
  • crytomerge.com (Crytomerge),
  • activefinancial.trade (Active Financial),
  • noventus-partners.io (Noventus),
  • livingtradefx.com (Livingtradefx),
  • bbcapitals.com and BB Capital (Broker Bank Capitals),
  • axiainvestments.com/es (Axia Trade),
  • Smarttool Trading SC Limited,
  • dynastyofcryptos.com (Dynasty of Cryptos and Platinumhitech),
  • microngroup.pro (Micron Group),
  • up-markets.com (Up Markets),
  • circulodeinversion.com (Circulo de Inversion).

This is another major update to the warning list after CNVM added 14 new entities to it at the end of January.

Investors can verify an institution's registration status by contacting the CNMV investor service line. Those who received offers from unauthorized entities on the warning list can inform the CNMV through the website's enquiry form or infringements communication channel.

Spain Has Introduced Further Restrictions on CFDs

The latest statement comes as the regulator continues its supervision and enforcement efforts to protect investors in Spain.

CNMV has recently enforced additional limitations on the marketing, distribution, and sale of CFDs products. These enhanced regulations, effective from 20 July 2023, prohibit marketing activities and strategies targeting retail investors or the broader public for CFDs. This prohibition extends to the engagement of sales representatives, call centers, sponsorship of events, and the use of public figures to endorse CFDs.

The CNMV asserts that these supplementary measures are necessary and balanced, building upon the initial CFD constraints set by Spain in 2019 and those established by the European Securities and Markets Authority in 2018 at the European Union level.

Following the announcement of these stricter regulations in Spain, there was a notable downturn in the share price of the Polish online brokerage firm XTB on the Warsaw Stock Exchange. Nevertheless, XTB subsequently clarified that the impact of the new regulations on its business operations has been "minor," with no considerable effect on its rate of acquiring new customers.

The National Securities Market Commission (CNMV) of Spain has released a statement today (Monday) warning investors about 18 investment companies that are not registered to operate in Spain.

These unregistered firms do not have authorization from the CNMV to provide investment services or engage in activities under the Commission's supervision.

CNMV Issues Warnings on 18 Unregistered Investment Firms

The full list of companies that received warnings from the CNMV includes a mix of FX/CFDs and crypto companies. The CNMV has urged investors to exercise caution when approached by any unregistered firms offering investment services in Spain.

The updated warning list includes:

  • toptiercapital.org (Top Tier Capital),
  • bitbinx.ltd and bitbinx.com (Bitbinx),
  • cryptomaxitrade.com (CryptoMaxiTrade LTD),
  • innovativefxtrade.com (InnovativeFX Trade),
  • globgraph.com/es (SIF - Swiss Investments Funds),
  • maxbreadinx.com (Breadinx),
  • universaltrade.io (Universal Trade),
  • crytomerge.com (Crytomerge),
  • activefinancial.trade (Active Financial),
  • noventus-partners.io (Noventus),
  • livingtradefx.com (Livingtradefx),
  • bbcapitals.com and BB Capital (Broker Bank Capitals),
  • axiainvestments.com/es (Axia Trade),
  • Smarttool Trading SC Limited,
  • dynastyofcryptos.com (Dynasty of Cryptos and Platinumhitech),
  • microngroup.pro (Micron Group),
  • up-markets.com (Up Markets),
  • circulodeinversion.com (Circulo de Inversion).

This is another major update to the warning list after CNVM added 14 new entities to it at the end of January.

Investors can verify an institution's registration status by contacting the CNMV investor service line. Those who received offers from unauthorized entities on the warning list can inform the CNMV through the website's enquiry form or infringements communication channel.

Spain Has Introduced Further Restrictions on CFDs

The latest statement comes as the regulator continues its supervision and enforcement efforts to protect investors in Spain.

CNMV has recently enforced additional limitations on the marketing, distribution, and sale of CFDs products. These enhanced regulations, effective from 20 July 2023, prohibit marketing activities and strategies targeting retail investors or the broader public for CFDs. This prohibition extends to the engagement of sales representatives, call centers, sponsorship of events, and the use of public figures to endorse CFDs.

The CNMV asserts that these supplementary measures are necessary and balanced, building upon the initial CFD constraints set by Spain in 2019 and those established by the European Securities and Markets Authority in 2018 at the European Union level.

Following the announcement of these stricter regulations in Spain, there was a notable downturn in the share price of the Polish online brokerage firm XTB on the Warsaw Stock Exchange. Nevertheless, XTB subsequently clarified that the impact of the new regulations on its business operations has been "minor," with no considerable effect on its rate of acquiring new customers.

About the Author: Damian Chmiel
Damian Chmiel
  • 1378 Articles
  • 28 Followers
About the Author: Damian Chmiel
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
  • 1378 Articles
  • 28 Followers

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