The CySEC says this brand is misleadingly claiming affiliation with a regulated CIF called A. Eternity Capital Management Ltd.
Cryptocapitalfx Is Not Regulated!
Trading with unregulated brokers is extremely not recommended, specially when the broker is making false claims of being regulated when it is actually not regulated at all. In this case, the broker Cryptocapitalfx (Cryptocapitalfx.com) is claiming that it has a Cyprus license when it has no such thing. CySEC has recently let the public know about this in a statement.
The Cyprus Securities and Exchange Commission has once again stepped up its fight against unauthorized brokers. The Cypriot regulator today published a warning against Cryptocapitalfx, which was just blacklisted after it was found facilitating trading in FX and cryptocurrencies without being authorized to do so in the country. The CySEC added that this brand is misleadingly claiming affiliation with A. Eternity Capital Management Ltd, which is already regulated in Cyprus and holds its CIF License.
While many providers claim to be Cyprus-based, the CySEC said previously it believed such companies were based overseas and providing false addresses, adding that it would look into taking further action if companies were actually based within the country.
The Cypriot watchdog has recently revealed new details about its efforts to regulate crypto assets, hinting more discussions might already be underway. The CySEC wants to increase oversight of cryptocurrencies and related assets by integrating EU anti-money-laundering rules into the Cypriot laws.
Crypto platforms face tighter AML rules – Derivatives referencing crypto assets would not fall under this suggestion, but we understand they remain subject to ESMA’s current restriction and any future proposals by the CySEC regarding the sale of these instruments to retail investors.
Published in June 2018, the AMLD5 is a pan-European anti-money laundering directive that member states will have until January 2020 to implement it into their national laws. The legislation is notable because it represents the EU’s first attempt to expressly regulate cryptocurrency activities at EU-level.
Meanwhile, the CySEC intends to go beyond the requirements set out in the fifth directive as it wants to bring new activities, which are not included in AMLD5, under the AML/CFT obligations. Also earlier this year, the CySEC warned of fraudsters that are claiming to be representatives of the regulator in an attempt to solicit personal information from consumers and scam investors.
According to a statement released by the Securities regulator, the fraudsters are claiming to be officers or appointed representatives of CySEC. By doing this, they are trying to scam investors into paying fees in exchange for the settlement of fraudulent compensation claims.
Should You Stay Away From This Broker?
Yes. Don’t sign up with any unregulated brokerages or firms and if a brokerage says it is regulated by CySEC or any other regulator, you can check on the regulators official website and make sure the broker is not making false claims of being licensed.
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