The Cyprus Securities and Exchange Commission (CySEC) has withdrawn the Cyprus Investment Firm (CIF) authorization of Magnum FX (Cyprus) after the broker “expressly renounced it.” CySEC in an announcement made on Tuesday said it had reached the decision to withdraw the license on January 23, 2023.

On Magnum FX’s page on CySEC’s website, the regulator noted that the company, which obtained the license in June 2018, is “under examination for voluntary renunciation of the authorization.” The Cypriot financial watchdog listed Magnum FX’s approved domains to include magnumfx.eu, ETfinance.eu, financedome.com and etfinance.com

Meanwhile, CySEC announced the withdrawal of the operating license of Inveza Capital Limited on Tuesday. In addition, the move is in tandem with the company’s decision to “expressly renounce it.” However, the regulator’s Board made the withdrawal decision two months ago, that is, on December 5, 2022.

Recently, CySEC withdrew the licenses of FF Simple and Smart Trades Investment Services Limited. The company operated at least two forex and CFDs brokerage brands: TradoCentrer and Toro Invest.

Magnum FX's Recent History with CySEC

CySEC’s withdrawal of Magnum FX’s license comes six months after the brokerage firm and another forex broker, F1 Markets, paid €150,000 each to the financial markets supervisor for “any violation or possible violation” of Cyprus' local regulations. Additionally, F1 Markets recently “expressly renounced” its CySEC license.

Both companies' settlement decisions came after CySEC raised concerns about the operation of their compliance measures between January 2019 and July 2020. These concerns were based on an onsite regulatory inspection conducted by CySEC at both firms.

Meanwhile, in June 2020, CySEC partially suspended the CIF licenses of Magnum FX and F1 Markets and fully suspended those of Hoch Capital and Rodeler Limited. The action came after the United Kingdom's Financial Conduct Authority (FCA) flagged the firms for using fake celebrity endorsements to promote their products on social media. Moreover, the UK regulator accused the brokers of not providing sufficient information to their customers about the nature of CFDs products, adding that they pressured some traders into making highly-leveraged bets on CFDs based on cryptocurrency, forex, shares and indices.

However, CySEC recalled the partial suspension of Magnum FX and F1 Markets’ CIF licenses in the same month after they took remedial actions.