April 17, 2024

Log-bit.com, Three Others Banned from Providing Investment Services by CySEC

In a circular published yesterday, Cyprus SEC – the country’s financial watchdog – blocked four websites and restricted them from offering investment services and participating in investment activities in the not-too-big country.

The affected investment platforms include log-bit.com, rynattrading.org, robofxmarkets.com, and spursmarkets.com. These platforms are accused of not being duly registered with the apex regulatory body according to the established laws as stipulated in Article 5, Law 87 (I)/2017.

Though these websites lay claim that their activities and existence are regulated by Cyprus financial agency, on the contrary, however, CySEC has debunked such claims, affirming that these platforms lack the authorization to provide services bordering on investments and investment participation.

CySEC – Cyprus Security Exchange Commission – is Cyprus’s apex financial market regulator. It is responsible for tracking illicit financial involvements and unauthorized investment companies conducting unethical investments practices in its money markets. Individual investors have no investment business with CySEC or on its behalf; it only exists to regulate activities of registered investment companies carrying out businesses or participating in investment activities with individuals and investors.

Protecting Investment Integrity in Cyprus

These four alleged investment platforms are not the first to be blocked by CySEc. In May 2021, FCA banned a Cyprus investment company from rendering its services in the UK. internationalinvestment.net reported that the activities of FXBFI have underscored the prospects of their expectations, as it has led to their clients losing a substantial amount of funds for investments. Therefore, as a measure of deterrence, it is most appropriate to impose sanctions on FXBFI, which will disable it from carrying out investment activities, including sales of products and services to UK customers.

Following the above restriction, in July and August of the same year, CySEC has also issued separate strict warnings to investors to beware of some investment companies fraudulently carrying out investment services and impersonating registered investment organizations.

In September of 2012, CySEc also issued a warning to the general public on five financial investments platforms that the agency does not duly register. Confirming that these investment companies are unlicensed, hence not authorized to carry out investment services of any sort.

As a result of these inconsistencies and more, and to instill diligence and integrity into its financial market, the country’s financial watchdog has been on the lookout for irregularities experienced by investors. More so, the watchdog has cautioned the general public, particularly investors, to be vigilant to avoid individuals, websites, or companies who meet them for investment purposes on behalf of CySEC or its officials as they have no business nor collect fees from individuals.

This action of CySEC is both timely and also in the right direction. As the need to invest and acquire virtual assets increases with more opportunities, many dubious persons and companies have ripped prospective investors of their funds for investment. Thus, CySEC being active as the apex regulatory financial agency, is working tirelessly to provide a serene environment for investment to thrive, thereby enabling investors to invest appropriately.

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