In a circular released on Monday, the main regulatory body of the financial market of Cyprus, the Cyprus Securities and Exchange Commission (CySEC), exposed additional unregistered forex and other investment platforms. The agency therefore blacklisted the following websites:
log-bit.com, Rynattrading.org, robofxmarkets.com and spursmarkets.com.
CySEC stated that these firms claimed to be regulated by the agency, but that it is untrue. The watchdog informed investors that such companies have not been given authorization by the agency to provide investment services and the performance of investment activities, as provided for in Article 5 of Law 87 (I)/2017.
CySEC emphasized that such firms are not licensed to operate a brokerage business in Cyprus, nor are they affiliated with a regulated entity. Furthermore, it warned that if consumers lost their funds on unlicensed platforms, they are not protected under the Investor Compensation Fund (ICF). This serves to protect the claims of covered clients and provide them with compensation, in case a member was unable to meet its financial obligations. CySEC further urged investors to consult its website (www.cysec.gov.cy), before carrying out business with investment companies, in order to determine whether the entities which are licensed to offer investment services and/or investment activities.
Protecting Providers, Consumers, and the System
This is not the first time that CySEC has blacklisted financial-related websites not authorized to operate under its jurisdiction. In September last year, the Cypriot financial authority issued a warning about five illegal brokers that did not belong to entities licensed by the watchdog. In August last year, CySEC warned about a fake website impersonating them and hosted in India. According to the regulator, the bogus site copied all the content illegally from the original CySEC website, giving a false impression that it is the real watchdog.
In July, the agency warned against fraudsters impersonating its regulatory executives who are engaged with companies under CySECs supervision. This came after the watchdog obtained several complaints from market players who complained that individuals impersonating CySEC officials and representatives were soliciting investors for fees, promising settlement of bogus compensation claims.
The agency cautioned the public about individuals who approach customers of suspended brands, or those under investigation, claiming that they can help them recover their money.
