CySEC Settles with FXVC for €100K, Broker Renounces CIF License

The Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) has reached a settlement of €100,000 with Finteractive Ltd, the operator of trading brand FXVC, for possible regulatory violations.

Though announced on Friday, the regulatory decision was taken on 14th March 2022.

“A settlement has been reached with the CIF Finteractive Ltd for possible violation of the Investment Services and Activities and Regulated Markets Law of 2017,” the Cypriot regulator stated.

“More specifically, the investigation for which the settlement was reached, covers the period 1.8.2019 to 28.2.2021 and involved assessing the Company’s compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term with article 22(1) of the Law as to the authorization condition laid down in article 17(2) of the Law, regarding the organizational requirements with which a CIF is required to comply.”

Renounced CIF License

The decision came months after the broker suspended all its operations under its Cypriot entity as it decided to renounce its Cyprus Investment Firm (CIF) license.

“We would like to inform you that FXVC had decided under its own initiative to renounce its CIF license with authorization number 238/14 as of 20 January 2022 and following communication with its existing clients, the Company as of 28 February 2022 ceased the offering of investment services,” a notice on FXVC’s website states.

“Clients, who have eligible funds in their account, were notified in order to be refunded the amount of their eligible funds or requested to provide information necessary to proceed with the refund.”

However, it looks like the broker is still offering services under its offshore license obtained from the financial market regulator in Seychelles.

Last year, the United Kingdom’s FCA stopped the services of FXVC within its jurisdiction for using “a variety of inappropriate techniques to promote its services.” The broker was operating in the country under FCA’s Temporary Permission Regime.