The sale of the business subsidiary of TechFinancials in Cyprus, which the company decided to offload in the final months of 2017, is on hold. The deal that the company announced last November has fallen through due to lack of regulatory approval.
The Cypriot authority has recently become much more vigilant when allowing new entrants into the market. The deal between S. Win Holdings and TechFinancials had been suspended for over three months before the parties decided to halt the process.
The delay in regulatory approval is a direct result of the increasingly vigilant supervision of CySEC when it comes to granting new licenses. Companies that have applied for a license with the Cypriot financial watchdog have been waiting for extended periods to gain approval. The process appears to also be affecting new entrants into the market, such as S. Win Holdings.
Regulatory Approval Delay Cancels $400,000 Deal
Due to the delay in regulatory approval, TechFinancials has decided to opt out of the sale of its CIF, B.O. TradeFinancials Limited. The cancellation of the $400,000 deal between the companies also affects the Seychelles-regulated market maker company MarketFinancials Limited.
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The conditions of the agreement between the companies grant TechFinancials the right to opt out of the deal. The company is reconsidering the sale of its assets in Cyprus and the Seychelles and is instead focusing on its core offering.
TechFinancials Shift to Crypto and Blockchain
The company has been actively diversifying its business as the firm committed to the development of a blockchain-based diamonds exchange and the integration of crypto payment processing.
Back in November, the company announced that its efforts related to the deployment of Bitcoin, Bitcoin Cash and Ethereum payments into the core systems of the company are focused on Q1 delivery.
The company is also continuing the development of its crypto offering related to the FX and CFDs trading platform.