CySEC Warns on Five Unauthorized Financial Websites

The Cyprus Securities and Exchange Commission (CySEC) has issued a warning about five financial-related websites that are not authorized to operate under its jurisdiction. According to the note, edufintech.org, vestlefx.com, powerfxm.com, traderscodes.com, and ti-gi.com are sites that don’t belong to entities licensed by the watchdog.

The Cypriot financial authority noted that these websites don’t fall under the category of companies that are authorized to offer ‘investment services and/or the performance of investment activities, as provided for in Article 5 of Law 87 (I)/2017.’ “CySEC urges investors to consult its website (www.cysec.gov.cy), before conducting business with investment firms, in order to ascertain the entities which are licensed to provide investment services and/or investment activities,” the CySEC warned.

As of press time, all of the websites flagged by the watchdog remain operational and target English and Italian-speaking investors. In addition, the authority has been active in strengthening its financial’s compliance rulings across the sector.

Recent CySEC Actions

Recently, the CySEC made public its decision to impose an administrative fine of €40.000 to London Capital Group (Cyprus) Ltd. The maneuver was decided on a meeting held on April 5, 2021, as the firm did not comply with the article 16(2) of Regulation (EU) 596/2014 on market abuse. Furthermore, in July, the authority extended the operating license suspension of investment firm Depaho Ltd, the regulator announced on Wednesday.

Initially, the CySEC suspended Depaho’s license earlier this month for alleged violations in almost twelve articles and provided two weeks to take necessary compliance actions. Depaho offers leveraged forex and contracts for differences (CFDs) trading services under its brand name FXGM and on the domain www.fxgm.com. The company received its Cyprus Investment Firm license in 2011 and purchased the FXGM brand in 2013 from FX Global Markets (FXGM), which in turn renounced its license in the same year.

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