The Cyprus Securities and Exchange Commission (CySEC) has issued warning notices against eight unlicensed platforms websites offering cryptocurrency and forex trading services.
13 August 2020 | AtoZ Markets – Financial fraudsters use sophisticated and effective tactics to get money. Scammers often solicit investors with investment fraud that promises quick returns with low or no risk. Some scam brokers also impersonate as authorized companies so-called clone firms. Moreover, the scammer copies the legal company details and tricks the customer into giving them money.
Cysec Issues Warning Against Eight Websites
CySEC is a financial regulator of Cyprus. It has issued a warning against eight websites that are conducting business illegally. Regulators have found that these websites provide cryptocurrency and forex trading services even though they are not allowed. However, some claim to be CySEC regulated, while others have fake addresses based in Cyprus. The blacklisted domain addresses are:
Cyprus regulator warns consumers that those websites “do not belong to the entity which has been granted an authorization for the provision of investment services and/or the performance of investment activities, as provided for in Article 5 of Law 87 (I)/2017.”
Cyprus regulators are also scrutinizing the operation of licensed brokers and taking action against many brokers because of noncompliance. Earlier this month, CySEC reached a settlement of €80,000 with Tradernet Limited. The regulator claimed that Tradernet did not comply with investment service and activity laws and regulated market laws. CySEC said, the broker provided inaccurate information to them, but nothing else was specified. However, the broker has already paid the fine.
CySEC also urges “investors to consult its website, before conducting business with investment firms, in order to ascertain the entities which allow to provide investment services and/or investment activities.”
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