The Cyprus Securities and Exchange Commission (CySEC) withdrew the Cyprus Investment Firm (CIF) license of MPS Marketplace Securities Ltd, which was previously known as SpotOption Exchange Ltd and S.O. Spotoption Ltd.
Announced on Tuesday, the regulatory action came after the company voluntarily decided to renounce its Cypriot operational license. The decision was confirmed by the regulator in a meeting held on 11 July 2022.
As seen on its website, MPS provided many services like reception and transmission of orders in relation to one or more financial instruments, execution of orders on behalf of clients, dealing on own account, ancillary services, custody of assets, foreign exchange services, and many more.
It primarily targeted the companies in the forex and contracts for differences (CFDs) industry.
Neither the regulator nor MPS revealed the reasons behind the decision to renounce the license. However, the company has faced extreme regulatory backlash in the past.
Earlier in September 2019, the CIF license of MPS Marketplace was suspended by the CySEC for a year for concerns around the safety and protection of client funds. It also alleged threats to the orderly operation and integrity of the markets.
Strengthening Supervision
CySEC is improving its supervisory measures on regulated financial services providers operating from its jurisdiction. It came after several European regulators, including ESMA, pointed out compliance violations by Cypriot firms.
Recently, CySEC issued a warning to CFD brokers and ordered them to improve practices. In case of any failure, the regulator will take enforcement actions that might include monetary penalties and even suspension or withdrawal of the CIF license.
