The Cyprus Securities and Exchange Commission has announced that around 10 crypto and foreign exchange companies have been blacklisted by the country. Reports say agents are stepping up their efforts against fraudulent brokers.
In its statement, the agency said the blacklisted platform was found guilty of providing illegal trading services on Forex and digital assets without the necessary permission and permission. In this round of blacklisting, the Cyprus SEC also issued a new round of warnings for other unlicensed providers performing services in this sector of the industry.
Cyprus Sec concludes the fraudulent platform
According to the agency, some of these unlicensed companies and platforms are usually decisive users by claiming they are connected to other registered brokers during Cyprus regulations. In other cases, we noted that these fraudulent platforms were to deceive users of the sector using Cyprus Investment Company (CIF) licenses awarded to these regulated companies.
In response, the Cyprus SEC has published a list of blacklisted platforms related to these fraudulent providers. Some of them include fasat-g.pro and market-trading.ltd, iqforextrade.net, metainindextrade.net, viptradersclub.com, stockforexinvestment.com, and Quantoria-markets.net. As the Cyprus SEC continues to double its attitude to adopt the best measures in terms of guidelines and operational regulations, certain aspects of regulations and operations have begun to focus more sharply.
One important change in the regulations is that it requires all service providers dealing with digital assets to register with the Cyprus SEC. Individual businesses that do not stick to new regulations face serious consequences. Additionally, penalties for non-compliance are fixed at a fine of up to $370,000 or a administered sentence of up to five years. In some cases, those found guilty may face a combination of both punishments.
Agency warns about gamification and “Finfulencers”
A recent Retail Investment Behavior Survey conducted by the Cyprus SEC shows that there is an increase in what is considered unregulated and unstable investment products. The agency said the increase was surprising. Because it shows that they still need to work to curb the sector of bad actors and criminal elements trying to steal unsuspecting victims of their hard-earned money.
Research also found that a small number of investors spent plenty of time researching the products they were trying to invest in and the companies that sell them, raising concerns that most investors don’t understand the risks of the crypto industry. On the retail side, they note that a quarter only spends six to seven days researching products, with 7% saying they spend less than 30 minutes or the entire amount on due diligence before paying to invest in the product.
Meanwhile, only 30% of respondents looked at the national regulator’s website to see if the broker’s website is licensed. 15% said they didn’t mind checking, and about 51% said they saw a company review before making a transaction.
For most people who fear missing out on the opportunity to make money from the Crypto industry, Cyprus regulators have launched a campaign to educate their citizens about the potential risks associated with online trading. The campaign was supported by the country’s financial regulators. This warned platforms that use colorful apps that look less intimidating and more like trading.
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