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Risk Warning: Your capital is at risk. Statistically, only 11-25% of traders gain profit when trading Forex and CFDs. The remaining 74-89% of customers lose their investment. Invest in capital that is willing to expose such risks.
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CySEC Adds Five More Unlicensed Brokers To Its Warning List

Author: Sydney Hooke
Sydney Hooke
All publications of the author

On November 3rd, 2022, the Cyprus Securities and Exchange Commission (CySEC) issued an official statement that it had blacklisted five fraudulent trading services. The financial regulator issued this public notice after discovering that the trading firms lacked the authorization to operate as investment service companies in Cyprus.

Details About of the Public Notice

Following the recent upsurge in crypto-related investment scams, the Cyprus financial market authority has been conducting stringent investigations of various trading services. The regulator has also issued several warnings periodically. 

The market watchdog has further protected unsuspecting investors by identifying and blacklisting specific fraudulent service providers. CySEC revealed some unlicensed brokers earlier this month in line with this mandate.

CySEC blacklisting a service provider implies that the firms' operations were deemed illegal and expected to cease with immediate effect. The five brokers recently blacklisted are rcebanque.com, winnexconsulting.com, roboticsforex.com, goldenburgfunds.com, and onecapitalinvest.com. Investors are advised to stop all transactions on this platform.

The financial regulator, upon the completion of its investigation, found that the blacklisted websites provided contracts for difference (CFD) trading and that two of the websites had made fraudulent claims of being regulated by CySEC. The Goldenburg Group Limited was a clone of a registered firm operating under several URLs.

To ensure that the public takes precautions to guard against current and potential fraudsters, a part of the statement advised, "Before doing business with investment firms, investors should visit the broker's website to find out which is authorized to perform investment services and/or investment activities.

The Regulatory Duties of CySEC 

According to Section 5 of the Securities and Exchange Commission (Establishment and Responsibilities) Law of 2001, CySEC was established as a public legal entity. By virtue of this, it autonomously supervises a wide range of transferrable securities markets, collective investment, and asset management businesses of the Republic of Cyprus.

Every financial regulator should be working ceaselessly and giving frequent warnings about fraudulent trading companies, which is what CySEC has been doing. For instance, at the end of September this year, the regulator blacklisted over 13 trading service providers in the space of two months. 

These blacklistings come after the regulator's discovery that some "supposed" CFD brokers do not belong to an entity that had been granted authorization to perform investment activities. This is in tandem with the provision of the law specified in Article 5 of Law 87 (I)/2017 for the provision of investment services.

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Risk Warning: Your capital is at risk. Statistically, only 11-25% of traders gain profit when trading Forex and CFDs. The remaining 74-89% of customers lose their investment. Invest in capital that is willing to expose such risks.