CySEC Withdraws Coverdeal’s CIF Licence Amid Cyprus Exodus

Following other FX brokers’ decisions to renounce their authorisation in Cyprus, the island’s Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission today said it has withdrawn the license of Coverdeal Holdings Ltd.

The announcement was made several months after the Cypriot broker said it suspended its operations and renounced the CIF authorization.

According to the 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 announcement and as confirmed by the firm itself, Coverdeal informed the regulator of its plans back in November 2020. The brokerage requested the surrender of the license solely as a company decision, while it remains unclear what was its initial reason.

Also, as CySEC manifests, Coverdeal did not arise to any regulatory action, yet it appears in its records that the firm was fined €250.000 for compliance of wrongdoings back in 2018. At the time, there was an investigation that involved the assessment of the company’s compliance with a number of law provisions.

A visit to the broker’s website reveals that Coverdeal has already proceeded with changes in its website to remove any references regarding authorization and supervision of the company by CySEC. However, this has yet to be updated to reflect the final withdrawal of its CIF license.

Additionally, the company notified clients about the new changes and clarified that it transferred funds of those who did not withdraw their balances to the investor's compensation fund, which can be claimed in due course. In any case, the clients of Coverdeal are still entitled to benefits from the Investor Compensation Fund (ICF), which serves to protect the claims of covered clients and provide them with compensation in case a member could not meet its financial obligations.

Under the Cypriot regulatory framework, the company must return all outstanding balances to its clients and handle all of their complaints. In addition, Coverdeal must provide confirmation from its external auditor that it does not have any pending obligations and must include details of each of the company’s clients, according to the same CySEC announcement.