CySEC has taken action against unauthorized cryptocurrency and FX brokers

On 21 February 2020 the regulators published a warning against Naga Markets and IcFxMarkets. The brokers were blacklisted for enabling trading of FX and cryptocurrencies while lacking the authorization to do so.

The commission has exclaimed that some of these brands are misleading customers into believing they’re dealing with otherwise already regulated and licensed brokers that hold CIF licenses in Cyprus.

The blacklisted domains trying to present themselves as the actual brokers are as follows:

  • icfxmarkets.com
  • naga-markets.online

The original, licensed brands being copied by the aforementioned are:

  • icmarkets.com
  • naga.com

The CySEC has also acknowledged that a lot of companies claiming to be Cryptus-based might actually be providing false addresses to conduct illegal operations.

CySEC aims to strengthen the supervision and regulation of cryptocurrencies by integrating EU anti-money laundering rules into Cypriot legislation.

Crypto exchanges are just one of the aspects that CySEC is focused on.
Cyprus is determined to become a leading center for innovation and growth globally, when it comes to blockchain.

The Innovation Hub

In October 2018, an “Innovation Hub” was formed by the Cyprus Securities and Exchange Commission to establish a dialogue with businesses providing financial technologies.

The Hub, serving as a knowledge-sharing platform for both supervised and non-supervised entities, has engaged with 19 companies and more than 10 third parties (legal practitioners, auditing firms, university representatives) in relation to specific queries and products with a wide spectrum of interests in innovation or simply seeking to understand the regulator’s view on financial innovation and its regulation such as:

  • Regtech (Regulatory and Antimoney laundering compliance tools.)
  • Companies using DLT for offering, transferring and verifying ownership of financial instruments.
  • AI based tools for Fintech and Regulatory purposes.
  • Tools for asset managers
  • Trading platforms intending to operate using DLT.

CySEC will continue to work closely with the members of the Hub to achieve better regulatory reporting without harming or slowing down innovation.  

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