The number of unregulated entities that target investors in Cyprus is on the rise, and the Cyprus Securities and Exchange Commission (CySEC) recently demonstrated it by blacklisting six new websites. All of the blacklisted sites represent online trading platforms that are not registered and regulated, and their addition to the list comes after the regulator added five more similar platforms to its list back in January.
CySEC issued its warning notice this Thursday, March 9th, listing six websites that have not been authorized to provide investment services in the region.
All functional websites falsely claim that they are regulated
Interestingly, three of the six websites feature the same branding, while the other three have unique identities. The three platforms that share the same brand include 21stfinance.net, 21stfinance.co, and 21stfinance.com. The other three include eurotradeforex.com, financewiseint.com, and pitbulls-markets.com.
Five of these are functional and responsive even now, while pitbulls-market-com is currently not responsive. Three sites that share the same brand offer trading in a variety of assets, including currencies, cryptocurrencies, commodities, metals, indices, as well as stocks. They also offer to trade with leverage that goes as high up as 1:500.
21st Finance-branded sites claim that they operate under the requirements of the UK’s FCA (Financial Conduct Authority) while also listing other regulatory bodies. However, the FCA database did not provide any information regarding these entities, indicating that the claims on the three websites are false.
Meanwhile, FinanceWise claims that it is a global financial services firm that offers managed accounts to retail and institutional investors alike. What’s more, it claims that it is regulated with CySEC, as well as that it features offices in the UK, Germany, and Australia. As for the fifth website, eurotradeforex.com, the platform says that it allows access to trading opportunities in more than 15,000 markets.
It also displays logos of several regulators, including the Spanish National Securities Market Commission (CMVN), Italian Companies and Exchange Commission (CONSOB), as well as the logo of CySEC itself. By displaying said logos, the company clearly suggests that it is regulated by these entities, which is, of course, not true.
CySEC blacklisted a total of 11 sites in 2023 so far
In light of the discovery of said websites, CySEC once again urged all investors to consult its website before conducting business with any investment firm and not just take these companies’ word as confirmation that they are truly regulated entities.
Especially since CySEC listed five other CFD and forex-trading platforms in January, none of which were under its supervision. In addition to the platforms mentioned above, that means that the regulator has added 11 websites to its warning list in 2023 alone. The companies blacklisted in January include inforexeu.com, Metexo.com, emporiumcapital.ltd, et-fx.com, and nbimarkets.com.