<p>The Cyprus Securities
and Exchange Commission (CySEC) has withdrawal the Cyprus Invesment Firm (CIF)
authorization of Magnum FX (Cyprus) after the broker decided to “expressly renounced
it.” CySEC in <a href=”https://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=c24ac637-aa00-438b-a60e-7b6ca6e50cf1″ target=”_blank” rel=”follow”>an announcement</a> made on Tuesday said it reached the decision to
withdraw the license on January 23, 2023.</p><p>On Magnum FX’s page
on CySEC’s website, <a href=”https://www.cysec.gov.cy/en-GB/entities/investment-firms/cypriot/80113/” target=”_blank” rel=”follow”>the regulator noted</a> that the company, which obtained the license
in June 2018, is “under examination for voluntary renunciation of the
authorization.” The Cypriot financial watchdog listed Magnum FX’s approved
domains to include magnumfx.eu, ETfinance.eu, financedome.com and
etfinance.com</p><p>Meanwhile, CySEC also <a href=”https://www.financemagnates.com/forex/inveza-capital-ltd-expressly-renounces-cysec-license/%5d” target=”_blank” rel=”follow”>announced the withdrawal</a> of the operating
license of Inveza Capital Limited on Tuesday. The move is also in tandem with the company’s decision to
“expressly renounce it.” However, the regulator’s Board made the withdrawal
decision two months ago, that is, on December 5, 2022.</p><p>CySEC
also recently <a href=”https://www.financemagnates.com/forex/cysec-withdraws-license-of-tradocenter-and-toro-invest-operator/” target=”_blank” rel=”follow”>withdrew the licenses</a> of FF Simple and
Smart Trades Invesment Services Limited. The company operated at least two
forex and CFDs brokerage brands: TradoCentrer and Toro Invest.</p><p>Magnum FX’s Recent History with CySEC</p><p>CySEC’s withdrawal of
Magnum FX’s license comes six months after the brokerage firm and another forex
broker, F1 Markets, <a href=”https://www.financemagnates.com/forex/regulation/cysec-settles-with-f1-markets-and-magnum-fx-cyprus-paid-150k-each/” target=”_blank” rel=”follow”>paid €150,000 each</a> to the financial
markets supervisor for “any violation or possible violation” of Cyprus’ local
regulations. F1 Markets also recently <a href=”https://www.financemagnates.com/forex/brokers/cysec-withdraws-license-of-fxcfds-brokerage-operator-f1markets/” target=”_blank” rel=”follow”>“expressly renounced”</a> its CySEC license.</p><p>Both companies’ settlement decision came after CySEC raised concerns about the operation of their compliance
measures between January 2019 and July 2020. The concerns were based on an
onsite regulatory inspection conducted by CySEC at both firms.</p><p>Meanwhile, in June
2020, CySEC <a href=”https://www.financemagnates.com/forex/cysec-suspends-24option-tradeatf-magnum-fx-and-f1markets-on-fca-request/” target=”_blank” rel=”follow”>partially suspended</a> the CIF licenses of
Magnum FX and F1 Markets and fully suspended those of Hoch Capital and Rodeler
Limited. The action came after the United Kingdom’s Financial Conduct Authority
(FCA) flagged the firms for using fake celebrity endorsement to promote their products
on social media. The UK regulator also accused the brokers of not providing
sufficient information to their customers about the nature of CFDs product,
adding that they pressured some traders into making highly-leveraged bets on CFDs based on cryptocurrency, forex, shares and indices.</p><p>However, CySEC <a href=”https://www.financemagnates.com/forex/brokers/cysec-returns-cif-licenses-to-f1-markets-magnum-fx/” target=”_blank” rel=”follow”>recalled the partial suspension</a> of Magnum FX and F1
Markets’ CIF licenses in the same month after they took remedial actions.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
