TopForex Operator Settles with CySEC for €270,000

The Cyprus Securities and Exchange Commission (CySEC) has settled with Goldenburg Group Limited, the operator of retail brokerage brand, TopForex, for €270,000 for possible regulatory violations.

According to Monday’s statement released by the regulator, the brokerage has possibly failed to meet several compulsory regulations, for which it has to agree to pay the monetary settlement.

Additionally, the Cypriot watchdog stated that the settlement was reached for possible operational violations between January 2018 and October 2020.

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 elaborated that the possible non-compliances were regarding the organizational requirements, along with some possibility of conflicts of interest. Moreover, it flagged the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term broker for the failure of assessment of appropriateness to clients and a few other violations as well. These are the standard violations for which the watchdog has flagged and settled with multiple brokerage operators.

“CySEC...may reach a settlement agreement regarding any violation or possible violation, act or omission for which there is reasonable ground to believe that is in breach of the provisions of legislation under the regulatory remit of CySEC,” the notice noted.

The Group Operating Multiple Brands

Goldenburg Group gained a Cyprus Investment Firm (CIF) license in July 2014 and is running multiple platforms with it. Some of its CySEC-approved domains are www.goldenburggroup.eu, www.topforex.com, www.toptrader.eu, www.fxglobal.com, www.tradecentrum.com and a few others.

This is not the first scuffle of the brokerage operator with the market watchdog, as, in 2019, it faced a fine of €170,000 for multiple violations.

Cyprus remained the preferred jurisdictions for brokerages to enter the European Union markets due to the regulatory cost-effectiveness. However, other regulators in the 27-country bloc are raising concerns with the many compliance violations on the part of Cypriot firms.