The Cyprus Securities and Exchange Commission (CySEC) has
warned investors regarding several unlicensed websites promoting
investment services. This is
already the third enforcement action taken by the regulator this month.
According to the CySEC announcement, the following 12
websites do not belong to authorized entities licensed to provide investment
services in Cyprus: cryplanet.com, brokeroneltd.com, nexotrades.com, illuxor.net, marketsac.com, ufxone.com, finquotesfinancial.work, globaldibs.com, successfulmarktplatform.com, canolimited.com, royalfxbank.com and tradeoptfx.com.
CySEC urged
investors to verify licenses on their official website before conducting business with any
investment firm. Licensed entities in Cyprus are authorized under Article 5 of Law 87(I)/2017.
The regulator periodically warns consumers of unregulated
websites falsely claiming to offer investment services. Investors dealing with
unlicensed firms have no recourse under Cypriot regulations and are at risk of
fraud.
CySEC invites investors to report any suspicious investment activities
not listed on their registry. Consumers can consult the CySEC website for a complete
list of authorized investment firms in Cyprus.
Why
Traders Should Avoid Unregulated Firms
There are
several crucial reasons why traders should avoid using investment services from
entities not regulated by CySEC or other prominent financial market watchdog.
Firstly, unregulated firms do not have to abide by the rules and regulations
that serve to protect investors. Without oversight from a regulator like CySEC ,
traders have no recourse or means of compensation if an unregulated broker
mishandles investor money or goes bankrupt.
Furthermore,
analysis of unregulated offshore brokers shows a substantially higher risk of
scams, loss of deposits, and other predatory behavior towards traders and
investors. This stems from the fact that such brokers largely answer only to
themselves without accountability standards enforced by regulators.
Additionally,
entities not regulated by CySEC cannot legally provide investment services
under Article 5 of Law 87(I)/2017 in Cyprus. CySEC routinely warns consumers of
unlicensed entities falsely claiming to offer trading and investment services.
Without licenses from oversight bodies like CySEC, such unregulated brokers
operate illicitly while putting trader investments and funds in jeopardy.
CySEC
Active at Year-End
As Finance
Magnates reported nearly two weeks ago, the Cypriot regulator imposed financial
penalties on several investment firms. Firstly, on 7 December, it fined Egard
Management Ltd, Enter Winglobe Management Ltd, and Apollo (Cyprus) Limited.
Earlier, a
penalty of €90,000 was imposed on the regulated firm Titanedge Securities Ltd,
which operates multiple CFDs brokerage brands, including TradeEU.com and Titan
Edge. The settlement was reached with the Cyprus Investment Firm (CIF) license
holder “for possible violations of The Investment Services and Activities
and Regulated Markets Law of 2017.”
During the
same period, the regulator published its Annual Statistical Bulletin for 2022,
highlighting an overview of Cyprus’ financial landscape. Despite a slowdown in
the global economy, the market for regulated entities showed resilience. The
number of regulated entities controlled by CySEC, also increased by 4%.
The Cyprus Securities and Exchange Commission (CySEC) has
warned investors regarding several unlicensed websites promoting
investment services. This is
already the third enforcement action taken by the regulator this month.
According to the CySEC announcement, the following 12
websites do not belong to authorized entities licensed to provide investment
services in Cyprus: cryplanet.com, brokeroneltd.com, nexotrades.com, illuxor.net, marketsac.com, ufxone.com, finquotesfinancial.work, globaldibs.com, successfulmarktplatform.com, canolimited.com, royalfxbank.com and tradeoptfx.com.
CySEC urged
investors to verify licenses on their official website before conducting business with any
investment firm. Licensed entities in Cyprus are authorized under Article 5 of Law 87(I)/2017.
The regulator periodically warns consumers of unregulated
websites falsely claiming to offer investment services. Investors dealing with
unlicensed firms have no recourse under Cypriot regulations and are at risk of
fraud.
CySEC invites investors to report any suspicious investment activities
not listed on their registry. Consumers can consult the CySEC website for a complete
list of authorized investment firms in Cyprus.
Why
Traders Should Avoid Unregulated Firms
There are
several crucial reasons why traders should avoid using investment services from
entities not regulated by CySEC or other prominent financial market watchdog.
Firstly, unregulated firms do not have to abide by the rules and regulations
that serve to protect investors. Without oversight from a regulator like CySEC ,
traders have no recourse or means of compensation if an unregulated broker
mishandles investor money or goes bankrupt.
Furthermore,
analysis of unregulated offshore brokers shows a substantially higher risk of
scams, loss of deposits, and other predatory behavior towards traders and
investors. This stems from the fact that such brokers largely answer only to
themselves without accountability standards enforced by regulators.
Additionally,
entities not regulated by CySEC cannot legally provide investment services
under Article 5 of Law 87(I)/2017 in Cyprus. CySEC routinely warns consumers of
unlicensed entities falsely claiming to offer trading and investment services.
Without licenses from oversight bodies like CySEC, such unregulated brokers
operate illicitly while putting trader investments and funds in jeopardy.
CySEC
Active at Year-End
As Finance
Magnates reported nearly two weeks ago, the Cypriot regulator imposed financial
penalties on several investment firms. Firstly, on 7 December, it fined Egard
Management Ltd, Enter Winglobe Management Ltd, and Apollo (Cyprus) Limited.
Earlier, a
penalty of €90,000 was imposed on the regulated firm Titanedge Securities Ltd,
which operates multiple CFDs brokerage brands, including TradeEU.com and Titan
Edge. The settlement was reached with the Cyprus Investment Firm (CIF) license
holder “for possible violations of The Investment Services and Activities
and Regulated Markets Law of 2017.”
During the
same period, the regulator published its Annual Statistical Bulletin for 2022,
highlighting an overview of Cyprus’ financial landscape. Despite a slowdown in
the global economy, the market for regulated entities showed resilience. The
number of regulated entities controlled by CySEC, also increased by 4%.
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- Source: https://www.financemagnates.com//forex/investor-alert-cysec-flags-12-unlicensed-investment-websites/
