Cypriot regulator suspends CIF authorization of FX broker Belight Capital Group

Maria Nikolova

The company, which trades as BelightFX, does not seem to have provided investment services during the last six months.

The Cyprus Securities and Exchange Commission (CySEC) today announces the suspension in whole of the Cyprus Investment Firm (CIF) authorisation of Belight Capital Group Ltd. In taking this action, the regulator has exercised the power granted to it under Article 70(1)(f) of the Investment Services and Activities and Regulated Markets Law of 2017 (‘the Law’).

The regulator explains that decision for the license suspension was made as it has suspicions of the company allegedly violating:

  • Articles 92(1) and 93(1) of Regulation (EU) No 575/2013 on prudential requirements, regarding own funds and capital ratio,
  • section 22(1) of the Law , due to the Company’s possible non-compliance at all times with sections 9(16) of the Law in relation to the obligations concerning its board of directors, and 17(1) and 17(2) of the Law, as specified in article 21(1)(d) of Regulation 2017/565, regarding its organizational requirements.

Furthermore, the company, which is operating as BelightFX, does not seem to have provided investment services during the last six months.

The above decision was reached as the aforementioned alleged violations cause concern and risk relating to the protection of the company’s clients or investors and constitute a threat to the orderly operation and integrity of the market.

Within 15 days, Belight Capital Group has to take actions in order to comply with the aforementioned provisions. While the suspension of the authorisation is in force, the company is not permitted to:

  • Provide/carry out investment services/activities.
  • Enter into any business transaction with any person and accept any new client.
  • Advertise itself as a provider of investment services.

The company, in case this is consistent with the wishes of its existing clients, may complete all its own transactions and those of its clients which are before it, in accordance with client instructions.

The company is also allowed to return all funds and financial instruments which are attributable to its clients.

About a week ago, CySEC announced the suspension of the CIF authorisation of UGL Exchange Ltd.

The action was taken pursuant to section 10(1) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation (‘DI87-05’), as there are suspicions that the company has violated:

  • Articles 92(1) and 93(1) of Regulation (EU) No 575/2013 on prudential requirements regarding own funds and capital ratio,
  • section 22(1) of The Investment Services and Activities and Regulated Markets Law of 2017 (‘ the Law’), due to the company’s possible non-compliance at all times with the authorisation condition in section 17(9) of the Law (organizational requirements), as specified in paragraph 4 of Directive DI87-01 of 2018, regarding the safeguard of clients’ funds.

Read this next

Digital Assets

Binance US weighs plans to go public, CEO CZ says

Binance.US, the American outpost of the world’s biggest crypto exchange, has seemingly plans to follow Coinbase’s path and go public one day.

Retail FX

FX volumes, number of active clients boom at Exness in June 2021

The latest group of retail FX platforms to report their monthly volumes indicate that June was a busier month all round, with Exness setting its second-highest monthly volumes on record.

Industry News

Individuals impersonating CySEC representatives draw warning from Cyprus watchdog

The Cyprus financial watchdog said on Friday there was evidence of fraudulent impersonation of its officials who are engaged with firms under CySEC’s supervision.

Digital Assets, Inside View

SEC v. Ripple angers XRP holders as rival Stellar (XLM) mixed in “love triangle” over MoneyGram

“Although the SEC claims that all XRP are unregistered securities and Brad Garlinghouse and Chris Larsen unjustly enriched themselves, it allows Ripple Co-founder JedMcCaleb to sell his XRP for hundreds of millions of dollars to possibly buy MoneyGram. Makes perfect sense”, said XRP Holders’ attorney John Denton ironically.

Industry News

Monex loses second appeal in CFTC anti-fraud enforcement action

Since Dodd-Frank that such trading must be conducted on a regulated exchange, and that the offeror must be registered with the CFTC.

Technology

Profile Software announces automated custody platform and mobile tech

The upgraded version of Axia Custody offers advanced functionality for multi-custodian operations across borders for a competitive multi-channel international-level client experience.

Industry News, Institutional FX

IHS Markit to pay CME Group $113m amid EU approval of post-trade JV

IHS Markik, at the same time, is being acquired by S&P Global Inc for $44 billion in stock, subject to approval as well.

Digital Assets

India’s Central Bank working towards implemention of digital currency

The Deputy Governor of the Reserve Bank of India, T Rabi Sankar, has said that the central bank was working towards a phased implementation of a central bank digital currency and is in the process of introducing it for wholesale and retail segments shortly.

Industry News

Visa acquires Currencycloud to facilitate global funds movement

Visa has announced the acquisition of Currencycloud, which provides APIs which help institutions with remittance and currency exchange capabilities in a deal that is valued at $963 million.