September 3, 2021, | AtoZ Markets – The Cypriot regulator, the Cyprus Securities and Exchange Commission (CySEC), has issued a warning to investors that the regular websites listed below for forex companies are not regulated and are not allowed to provide investment services in the country.
CySEC blacklists five FX websites
Unauthorized FX brokers are becoming common in the industry, as fraudsters have grown increasingly resourceful in recent years. A commonly adopted tactic is for scammers to advertise an illegal operation as a reputable brand or entity. They do this in order to dupe unsuspecting investors into parting with their personal details or cash.
To protect investors from being scammed, the Cypriot regulator has blacklisted the following domains:
- edufintech.org
- vestlefx.com
- powerfxm.com
- traderscodes.com
- ti-gi.com
CySEC stresses that these firms do not have the authorization to do brokerage business in Cyprus, nor do they have any affiliation with a regulated entity. According to the watchdog, consumers who lose their money on unauthorized platforms do not have the protection of the Investor Compensation Fund (ICF), The ICF serves to protect the claims of covered clients and provide them with compensation in case a member couldn’t meet its financial obligations.
CySEC also urges investors to consult its website (www.cysec.gov.cy), before conducting business with investment firms, in order to ascertain the entities which are licensed to provide investment services and/or investment activities. Although CySEC works alongside other national financial industry supervisors, it is hard work to flag as many illicit websites as possible.
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