The International Financial Services Commission (IFSC) of Belize has announced the suspension of the brokerage firm Oasis. Is Oasis Global FX scam or reliable?
May 8, 2019, | AtoZ Markets - The key financial regulator of Belizean markets, the IFSC of Belize has released a document on Wednesday, May 8, stating that the license of Oasis Global FX, S.A. (Oasis) has been suspended.
Oasis Global FX scam leads to license suspension
Oasis license suspension comes two weeks after the Commodity Futures Trading Commission (CFTC) filed a civil enforcement action in federal court in Florida against the firm for helping in facilitating an alleged Ponzi scheme that amounts to the tune of $75 million raised from over 700 investors.
The U.S. CFTC reported that in a period between mid-April 2014 and the present, the defendants had received approximately $75 million from pool participants for investment in two commodity pools—Oasis Global FX, Limited and Oasis Global FX, SA (collectively, the “Oasis Pools”). One of the pools that they deposited money into was operated by Oasis. The CFTC also claims that the alleged fraudsters promised investors massive returns from these two FX investment pools.
While supporting the fraudulent FX scheme, AtoZMarkets reported that Oasis Global FX hid their fraud, as their workers sent bogus account statements to the participants in the pool, which falsely shows positive returns on their investments, but in reality, they have lost $21 million. Meanwhile, the fraudsters misappropriated $47 million. These were spent on flashy cars, large houses and expensive holiday trips, as per CFTC.
What now for Oasis?
After the CFTC said it would be pursuing enforcement action, the Belize regulator sent a letter to Oasis Global FX, S.A., giving them an opportunity to show why the commission should not suspend its license to trade in financial and commodity-based trading instruments.
However, the company failed to honor the request of the Belizean financial watchdog to show cause and on Wednesday, they decided to suspend its trading license. As per the regulatory statement:
“After due consideration, the Commission gives notice that the license (ISFC/60/483/TS/19) granted to the company [Oasis]….is suspended until further notice.”
IFSC lists brokers with expired licenses
Recently, IFSC announced a list of FX brokers, asset managers and binary options brokers whose license to operate in the country have been revoked. Following the announcement that took effect from 1st January 2019, the regulator warned that any professional investment services provided by these firms to Belize's clients, without proper authorization, would be considered a criminal offense.
Belize's financial watchdog has joined its counterparts in other countries in monitoring and accessing companies that are involved in crypto-related activities. In November 2018, the online retail brokerage firm Alpari decided to shut down its branch in Belize. It planned on moving its clients to its affiliates in Saint Vincent and Grenadines subsidiary, as per the media.
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