CySEC Settles with ROInvesting's Operator Royal Forex for €120K

The Cyprus Securities and Exchange Commission (CySEC) has settled with Royal Forex Ltd for “any violation or possible violation” of local regulations. The brokerage operator paid €120,000 as a part of the settlement process.

The decision for the settlement was taken by the regulator’s board on 3 October but announced on Thursday.

The settlement was reached as there were concerns of possible regulatory compliance violation by the brokerage operator between July 2020 and October 2021. 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 even highlighted the possible lapses around the company’s organizational requirements and “regarding the general principles and information addressed to clients.”

“CySEC, under article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009, has the power to reach a settlement for any violation or possible violation, act or omission for which there is reasonable ground to believe that it took place in violation of the provisions of CySEC’s supervised legislation,” the regulatory announcement added.

A Troubled Broker

Royal Forex operates forex and CFDs brokerage brand ROInvesting. Additionally, the broker strengthened its brand recognition by inking a sports sponsorship deal with the famous Italian football club, AC Milan FC.

The settlement came when Royal Forex already voluntarily renounced its Cyprus Investment Firm (CIF) license, a decision which is now pending with the regulator. The company received the Cypriot license in March 2015.

Meanwhile, it was not the first time Royal Forex had troubles with the Cypriot regulator. In October 2020, the brokerage operator paid €270,000 in a similar settlement with CySEC but for possible violation of a higher number of regulatory rules.

Cyprus is home to several 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 and CFDs brokerage operators. These brokers obtained the CIF license, which is comparatively easier to gain than from other European regulators, and passport it to offer services in other European Economic Area markets.

Recently, CySEC suspended the CIF license of the local unit of the collapsed cryptocurrency exchange FTX.