CommexFX bites the dust…. or does it?

For Cyprus-based retail FX brokerage CommexFX, a license suspension by Cypriot regulatory authority CySec extended across the majority of the summer months of this year, before the company closed its metaphorical doors in August for the last time. The final sign that the company is no more arrived last week, when the lease on the […]

For Cyprus-based retail FX brokerage CommexFX, a license suspension by Cypriot regulatory authority CySec extended across the majority of the summer months of this year, before the company closed its metaphorical doors in August for the last time.

The final sign that the company is no more arrived last week, when the lease on the firm’s website expired and the domain became available on the open market. FinanceFeeds investigated this matter and via several sources has been informed that CommexFX stopped its operations in August.

On June 12 this year, when CySec initially suspended the license of CommexFx, the regulator stated that it had cause for concern over the procedures by which CommexFX safeguards client funds. This suspension remained in place for 15 days, but was extneded subsequently.

The company’s license remains suspended, with operations having ceased, however FinanceFeeds has learned from sources close to the firm’s operations that there is a potential buyer which may resurrect the company by purchasing the entire firm including its client base.

At the time of the decision to suspend the license by CySec, the regulator did not elaborate on what the exact concerns relating to the method by which the company safeguards client funds.

Just a few days after the suspension of the company’s license, Abdelrahman Alimari, CEO of CommexFX was fined 30,000 EUR and the company itself 100,000 EUR, sizable fines by CySec standards, for providing “false and/or misleading information” that may impede the ability of the regulatory authority to carry out investigations necessary to ensure the proper functioning of the financial market and to maintain public confidence in it.

At this stage, the identity of the potential buyer is a private matter between the parties involved and has not been divulged, however FinanceFeeds will endeavor to report further as events become clear.

 

 

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