Cyprus FX firm Falcon Brokers ordered to return all client funds as license suspension gets extended by CySec

Cyprus-based FX firm Falcon Brokers has been ordered by Cypriot financial services regulatory authority CySec to close all open positions in relation to clients’ contracts as well as any open positions which are being traded on its own account, and return all funds to clients. Falcon Brokers, which is based in Limassol and conducts a large […]

Cyprus-based FX firm Falcon Brokers has been ordered by Cypriot financial services regulatory authority CySec to close all open positions in relation to clients’ contracts as well as any open positions which are being traded on its own account, and return all funds to clients.

Falcon Brokers, which is based in Limassol and conducts a large proportion of its business with customers in the Middle East, had its license suspended by CySec on September 24 this year, and following a further meeting on October 26, the regulatory authority took the decision to extend the suspension, without stipulating an end date to the suspension.

Unlike regulatory authorities in North America or parts of the Far East such as Singapore or Japan, CySec is regarded as an organization which does not take draconian measures if an administrative matter comes to light, and it is very rare for companies in Cyprus to receive such censuring as to have to cease their operations.

CySec has not yet detailed the reason for the ongoing suspension, or for its demand that the company cease operations and return funds to customers, however the action follows a similar path taken by the regulatory authority recently with regard to CommexFX, which is also a retail FX firm based in Cyprus which serves a predominantly Middle Eastern audience.

To read the full announcement from CySec, click here.

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