Victor Ugochukwu · Dec 14, 2020 . 5min read
CySEC cautions against unlicensed FX and Crypto Domains
The Cyprus Securities and Exchange Commission (CySEC) has barred six FX brands and crypto domains, for unauthorized trading of FX and crypto.
By Komal Joshi · Aug 8, 2020 . 6min read
The Cyprus Securities and Exchange Commission (CySEC) has barred six FX brands, for unauthorized trading of FX and crypto. According to reports, the brands deceivingly alleged affiliation with Bdswiss Holding licensed and regulated in the country.
Nonetheless, fxg.market, 247firstinvest.com, keyoncapital.com, cryptotradecentr.com, fxgrowcapital.com, meritkapital.net, and procloudoptions.online are among the recent entities that are added to the CySEC’s warning list. However, these brands promoted FX and cryptocurrency without an adequate license. Additionally, CySEC also issued a warning against a company called eMarketsTrade, working in both crypto and FX trade.
CySEC Faces Security Threats
Various providers claim that they deal in Cyprus across the globe. The CySEC earlier said it believed such companies were located overseas and offered false addresses. Additionally, it states if the companies are located in the country, strict action will be taken. Consequently, it elucidates that it is sometimes hard to find the operators’ names on their websites. Also, it is challenging to locate the addresses as the company headquarters are often offshore letterbox addresses.
CySEC’s Rules and Regulations
Consumers may or may not lose money on the platform. However, CySEC states that customers losing money should be licensed. They do not get the benefits under the Investor Compensation Fund (ICF) if they do not possess adequate license. This assists in protecting the claims of covered clients. It also offers them with compensation in case a member couldn’t meet its financial obligations. Earlier last year, the CySEC modified maximum compensation for valid claims to be either 90% of the cumulative covered claims or €20.000, whichever is less.
The imposition of EU Anti Money Laundering Amendments
EU’s 5th Anti Money Laundering Directive proposes member nations to implement the new legislation until January 10th, 2020. It is the first attempt to regulate cryptocurrencies at an EU level expressly. On January 1st, 2020, Germany will implement the new directive. Other nation’s views are also both well underway. Moreover, enduring national regulations for cryptocurrency already go further than those suggested in the EU directive.
Other EU countries follow the same legislation. Cyprus will be following the latest amendment to the European Anti Money Laundering Directive into its current regulation.
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