CySEC Warns of 16 Suspicious Online FX and Crypto Brokers

There are 16 new dubious trading platforms for forex and cryptocurrencies that are falsely claiming to be registered under CySEC. This is according to an updated warning list by the Cyprus Securities and Exchange Commission (CySEC) on Monday.

CySEC is now advising investors to be cautious of all the mentioned platforms which include upshot finance.biz, instantcryptoforextrades.com, global-vesco.ltd, and intlmc.com.

The rest of the domains are: raphaelfxinvestment.com, cointradefxpro.com, coinstradingbit.com, rfm corp.co, leadwayfinance.ltd, wfcorp.co, forex-earners.org, maximumfinancetrade.com, infocorp.co, fastrade.ltd, alhabitfx.org, and expert-earners.com.

All Platforms Claiming To Be Authorized By One CIF-Regulated Broker

CySEC said that all the platforms claim to be licensed under one regulated brokerage firm, BrokerCreditService (Cyprus) Limited.  The firm holds a Cyprus Investment Firm (CIF) license which is required for companies to offer trading services in Cyprus.

However, none of the listed platforms have authorization from BrokerCreditService Limited to operate under its license. All the flagged platforms are offering investments services with foreign exchange instruments and digital currencies.

Their services range from instant trading services for forex and cryptocurrencies, portfolio management and reinstate investments. Several are even flashing the current high price of Bitcoin on their websites to trick investors into rush investment decisions.

CySEC further noticed that several of the websites interestingly feature identical designs with a few minor differences in branding.

CySEC Can Only Issue Public Warnings

CySEC’s CIF license is one of the most coveted trading licenses in Europe. It offers access to the highly lucrative European Economic Area (EEA), making Cyprus a desirable jurisdiction for   financial services firms.

However, CySEC has less powers than other European watchdogs to act on suspicious trading services providers.  The commission can only update its lists of fraudulent and unregistered brokers and issue public warnings to investors.

Meanwhile in Italy, the Consob can order internet companies to block online access for suspected websites.  Such lack of additional power on CySEC’s part makes its jurisdiction a hot zone for financial criminals and scammers.

In related CySEC news, the watchdog recently updated its Brexit Information hub to help UK firms to transition smoothly.  CySEC launched the dedicated section on its website to facilitate easy legal navigation for all concerned parties.  This includes firms that were previously piloting services in Cyprus through an FCA license and those seeking a CIF license.