The Cyprus Securities and Exchanges Commission (CySEC) has issued a warning against 11 foreign exchange and cryptocurrency exchanges on the island that are operating without proper licenses. The security exchange claims that most of the companies are based in other countries but give false addresses in Cyprus to lure the public. The regulators warned such companies against these illegal practices while pledging to take further actions against those that were indeed based on the Eastern Mediterranean island.
CySEC flags several crypto companies that falsely claim to be licensed.
Some of the companies that the security exchange flagged include Binance Capital Options, a company that claims to be licensed to operate in the European Union (EU). The crypto firm is not related to the world’s leading crypto exchange, Binance. The company lets its users trade CFDs on digital currencies as well as stocks, metals, indices, and commodities. Curiously, the company claims to be licensed by the Cyprus Securities and Exchanges Commission on its website. The other company that the CySEC flagged is Invest Absolut Ltd that also claims to be licensed by the regulator, as does Trades Open Markets, which is also on the list.
Crypto scams are on the rise despite the strict regulations.
The eastern Mediterranean island has a history of cracking down on the trading platforms that fail to adhere to its strict guidelines. Earlier this year, the security exchange sounded a warning against three companies that falsely claimed to have offices in Cyprus. Despite strict regulations around the crypto industry, there has been a noticeable surge in crypto scams. Earlier, the FBI issued a warning about the surge in crypto scams during the pandemic. Despite being tough on potential crypto scammers, the Cyprus security watchdog has embraced blockchain technology. The security exchange launched ‘Innovation Hub’ back in October 2018 to foster cooperation between tech startups and regulators.