CySEC suspends license of FX firm Daweda Exchange

Maria Nikolova

For a period of 21 days, the company is not permitted to carry out investment activities, accept new clients and advertise itself as a provider of investment services.

The Cyprus Securities and Exchange Commission (CySEC) today announces that the Cyprus Investment Firm (CIF) authorisation of FX firm Daweda Exchange Limited (number 289/16), is suspended in whole.

The regulator has made the decision as there are suspicions of an alleged violation of section 22(1) of the Law due to the company’s possible non-compliance at all times with the authorisation condition in section 11(1)(b) of the Law (Chapter I) regarding the appropriateness of its shareholders. The decision was reached as the aforementioned alleged violation causes concern and risk relating to the protection of Daweda Exchange’s clients or of the investors and constitutes a threat to the orderly operation and integrity of the market.

For a period of 21 days, the company has to take actions in order to comply with the aforementioned provisions.

While the suspension of the authorisation is in force, as provided for in section 9 of DI87-05, 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.

Also, during the 21-day period, the company, provided this is consistent with the wishes of its existing clients, may proceed with certain actions, without such actions being considered as breach of section 7(a) of DI87-05. Such actions include”

  • Complete all its own transactions and those of its clients which are before it, in accordance with client instructions.
  • Return all funds and financial instruments which are attributable to its clients.

According to CySEC’s database, Daweda operates via the website dawedafx.com. The website is active at the moment of publication of this article and contains no information about the CySEC’s action.

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