CySEC Sounds Regulation Alarm on 11 FX and Crypto Platforms

The Cyprus Securities and Exchange Commission has once again stepped up its fight against unauthorized brokers. The Cypriot regulator today published a warning against 11 brands, which were just blacklisted for facilitating trading in FX and cryptocurrencies without being authorized to do so in the country.
The CySEC added that some of these brands are misleadingly claiming affiliation other brokers that are already regulated in Cyprus and hold its CIF License. The watchdog has blacklisted the following domains:

  • bitoptionstrade247.com
  • gtm.fxaddress.com
  • tradesopen.com
  • fxgmfx.com
  • royalfxpro.eu
  • invest-absolute.com
  • justproforex.com
  • binancecapitaloptions.com
  • metafinancetrade.com
  • 21stfxoptions.com
  • amelok.com
  • While many providers claim to be Cyprus-based, the CySEC said previously it believed such companies were based overseas and providing false addresses, adding that it would look into taking further action if companies were actually based within the country.
    The Cypriot watchdog revealed in 2019 details about its , hinting more discussions might already be underway. The CySEC increased oversight of cryptocurrencies and related assets by integrating EU anti-money-laundering rules into the Cypriot laws.
    Crypto platforms face tighter AML rules
    Derivatives referencing crypto assets would not fall under this suggestion, but they remain subject to  and any future proposals by the CySEC regarding the sale of these instruments to retail investors.
    Meanwhile, the CySEC intends to go beyond the requirements set out in the fifth directive as it wants to bring new activities, which are not included in AMLD5, under the AML/CFT obligations.
    Earlier in November, the Cypriot regulator excluded 11 trading brands from its lifeboat scheme. The list includes some now-defunct FX brokers, including , , and , which in 2019 shut down its services to retail customers in Europe.
    Also earlier last year, the CySEC warned of fraudsters that are claiming to be representatives of the regulator in an attempt to solicit personal information from consumers and scam investors.

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