The Cyprus Securities and Exchange Commission (CySEC) has issued a warning notice on Wednesday against eight unlicensed platforms offering trading services with contracts for difference, cryptocurrency, and forex.
The blacklisted domain addresses are:
The market watchdog stressed that none of these domains belong to any regulated entities and are illegally offering brokerage services to the investors.
It also warned that if consumers lost their money on the platforms that are not licensed, they are not protected under the Investor Compensation Fund (ICF), which serves to protect the claims of covered clients and provide them with compensation in case a member couldn’t meet its financial obligations.
Financial crimes are increasing rapidly
The CySEC is vigilant against illegal platforms operating in the market and using its name to gain investor’s trust. Previously, the watchdog also warned against the illegal platforms that spun off from shuttered brokerages. Most of these platforms falsely claim to hold CIF licenses.
The fresh list was published only a week after the watchdog for duping investors with similar services and claims.
The Cypriot regulator is also keenly scrutinizing the operations of the authorized brokers and took actions against many for breach of compliance.
Recently, the regulator for €280,000 after suspending the license of the broker for unauthorized practices. Notably, this brokerage was also banned by the CySEC counterparts in the United Kingdom and Italy.
Meanwhile, regulators across Europe are now maintaining such lists to restrict illegal brokerages and warn the investors. A similar blacklist is also maintained by Italian regulator that already added 268 suspicious trading platforms to it.
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