Why did CySEC blacklist CryptoCapitalFX?

April 11, 2019, | AtoZ Markets – The Cyprus Securities and Exchange Commission (CySEC) has just added a new warning against cryptocurrency trading firm, blacklisting the broker CryptoCapitalFX.

In its notice, published on its website on April, 10th, the CySEC confirmed that “the website cryptocapitalfx.com, does not belong to an 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.”

Is Cryptocapitalfx a reliable Forex and crypto broker?

Definitely, this question is not meant to be one that needs an answer after the Cypriot regulator put it on the blacklist for authorisation issues. However, we can still track how it ended up blacklisted.

The coveted CySEC licence, as known, pushes scammers to forge documents and copy authorized websites, in order to look safe for investors, so the latter pour their money in the scammer’s accounts.

Cryptocapitalfx, not far from the above-mentioned context, had taken part in facilitating trading Forex and cryptocurrencies, under a fabricated CySEC licence.

The blacklisted Forex and crypto broker Cryptocapitalfx claimed to have affiliation with A. Eternity Capital Management Ltd, a regulated firm with a CIF licence.

However, the CySEC clarified on its website that the information Cryoptocapitalfx claims on its website “which suggests that it belongs or is related to the Cypriot Investment Firm A. Eternity Capital Management Ltd (License No. 346/17), is misleading and does not correspond to reality.”


ICFD updates and more commitment to AML standards

The CySEC especially tightens its firm on Forex brokers, following many other financial regulators in different countries, seeing in Forex a high risk that needs to stay under the telescope, while it is said to be working on integrating the EU standards for anti-money laundering.

Recently, the CySEC introduced a new Investor Compensation Fund Directive to apply to all Cypriot investment firms (CIF) that provide investments or any ancillary services. 

Earlier this year as well, the Cypriot regulator had requested all CIFs to fill a new form that gives details of their entire 2018 trading volume. CIFs were required as well to break down volumes into asset sub-classes and include all trading undertaken, including those with retail traders, professional traders and eligible counterparties. The form mentioned also required those firms to report on margin trading, including the leveraged amount. For example, if a trader’s initial fund was $1000 with leverage 1:100, the total amount of $100,000 should be reported by the broker as the leveraged amount.

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