NordFX, known for its forex and CFD services, has raised concerns by using a previously CySEC-regulated entity that now operates as a payment agent. NordFX informed FinTelegram that the operator, NFX Capital VU Ltd, has transitioned its registration from Vanuatu to St. Lucia. Traders are urged to note that their client agreements are now with this unregulated offshore entity, and NordFX disclaims responsibility for the accuracy of information on its site.

Shifting Legal Entities and Operational Changes

NordFX, established in 2008 or 2009, has undergone legal entity changes across jurisdictions. It was formerly operated in Europe by CySEC-regulated NFX Capital CY Ltd, which later became Inveza Capital Ltd. Despite the Inveza website being offline, the entity remains active as a payment agent for NordFX.

Previously registered in Vanuatu, NordFX is now based in St. Lucia and operates primarily in Asia, offering high leverage of up to 1:1,000. However, the broker has experienced a significant drop in website traffic, with a decrease from nearly 500,000 daily visitors to around 233,000 in November 2023.

NordFX claims to have more than 2 million clients and 29,000 affiliates, although these numbers are under scrutiny for accuracy. Despite NordFX's claim of not accepting clients from North America and the EU, there is a possibility of EU residents registering on the platform.

In last two years, Vanuatu has transitioned from being an offshore jurisdiction to regulating digital assets under the amended Financial Dealers Licensing Act. Licensees like Deriv, TMGM, Axi, and Titan FX shared their experiences, citing challenges such as staffing shortages and the need for collaboration among regulatory bodies.

CySEC Takes Action: Inveza Capital Ltd Loses Operating License

The Cyprus Securities and Exchange Commission has officially revoked the operating license of Inveza Capital Ltd, a company that had previously decided to "expressly renounce it." Although the announcement was made recently, the regulatory board concluded the decision over two months ago, on December 5, 2022.

Inveza Capital Ltd, formerly known as NFX Capital Cy Ltd and Vinst Capital Limited, obtained its license in August 2013, allowing it to provide investment services through the website inveza.com. The revocation of the Cyprus Investment Firm authorization was carried out in compliance with the Investment Services and Activities and Regulated Markets Law.