Is Daweda Scam or Reliable? CySEC Suspends FX Broker Temporarily


Is Daweda FX scam or reliable? CySEC has wholly suspended its CIF license due to suspicions of non-compliance regarding the protection of its clients.

23 December 2019 | AtoZ Markets – The Cyprus Securities and Exchange Commission (CySEC) today announces that the Cyprus Investment Firm (CIF) authorization of FX firm Daweda Exchange Limited (number 289/16), is suspended in whole. Is Daweda FX scam or reliable?

Why CySEC suspended Daweda Exchange CIF license?

The regulator has made the decision as there are suspicions of an alleged violation of section 22(1) of the Law due to the company’s possible non-compliance at all times with the authorization condition in section 11(1)(b) of the Law (Chapter I) regarding the appropriateness of its shareholders.

The decision was reached as the aforementioned alleged violation causes concern and risk relating to the protection of Daweda Exchange’s clients. This, however, constitutes a threat to the orderly operation and integrity of the market

CySEC imposes the punitive measures

Moreover, for 21 days, the company has to take action in order to comply with the aforementioned provisions. For as long as the suspension of the authorization is in force, as provided for in section 9 of DI87-05, the company is not permitted to:

  • Provide/carry out investment services/activities.
  • Enter into any business transaction with any person and accept any new client.
  • Advertise itself as a provider of investment services.

Also, during the 21-day period, the company, provided this is consistent with the wishes of its existing clients, may proceed with certain actions, without such actions being considered as a breach of section 7(a) of DI87-05. Such actions include”

  • Complete all its own transactions and those of its clients which are before it, in accordance with client instructions.
  • Return all funds and financial instruments which are attributable to its clients.

According to CySEC’s database, Daweda operates via the website dawedafx.com. The website is active at the moment of publication of this article and contains no information about the CySEC’s action.

AtoZMarkets has reached out to Daweda for comments and this article will be updated once they are received. 

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