CySEC Withdraws Daweda Exchange CIF Licence


CySEC has announced the withdrawal of the CIF licence of Daweda Exchange Ltd for breaching regulation in providing investment services to clients.

June 18 2020 | AtoZ Markets – As the Cyprus Securities and Exchange Commission (CySEC) continues its crackdown, it has withdrawn the Cyprus Investment Firm (CIF) license of Daweda Exchange Ltd for non-compliance of the jurisdiction laws.

CySEC wholly withdraws Daweda Exchange CIF licence

The decision to “wholly withdraw” the broker’s license took effect on July 15 as Daweda “did not act honestly, fairly and professionally when providing investment services to clients, in accordance with the best interests of its clients.”

The Cypriot regulator also accused that the company did not take the necessary steps to safeguard the privately-owned URL (domain) of www.daweda.com, from being used by Daweda Ltd (BVI).

“Daweda Ltd (BVI) and Daweda Exchange Ltd do not belong in the same group of companies,” CySEC said.

Multibank
4.9/5
Multibank Review
Visit Site
eToro
4.9/5
eToro Review
Visit Site
Capital.com
4.8/5
Capital.com Review
Visit Site

According to the CySEC, the Daweda Ltd (BVI) was using the email address account@dawedafx.com, to send its clients their MT4 login ID and password information. By so doing, they gave the impression that they were clients of the Cyprus Investment Firm Daweda Exchange Ltd.

CySEC imposed a six-month ban on two board members

CySEC also put a temporary six months ban on the executive members of the company’s board of directors who have also not complied with the regulation. The two board members, Hamed Sepasdar Tehran and James Cabrera failed to supervise the senior management of Daweda Exchange.

“…at the material time and while they were members of the board of directors of the Company, they did not define the governance arrangements that ensure the effective and prudent management of the CIF, in a manner that promotes the integrity of the market and the interest of clients,” the official notice noted. “In particular, they did not comply with the principle of article 10(1)(b)(iv) of the Law, since they did not supervise effectively the senior management of the Company.”

As AtoZ Markets reported, CySEC also suspended Daweda Exchange’s license was also last December, citing non-compliance with regulatory standards.

Meanwhile, the CySEC returned the licenses of two temporarily banned forex brokers – F1 Markets and Magnum FX (Cyprus).

Think we missed something? Let us know in the comment section below.

Leave a Reply

Your email address will not be published. Required fields are marked *