The Cyprus Securities and Exchange Commission (Cyprus SEC) is intensifying its measures against unauthorized platforms, recently announcing a blacklist of 10 businesses dealing in cryptocurrencies and forex.
Blacklist of Unauthorized Platforms
The Cyprus SEC stated that it has blacklisted ten platforms found guilty of offering illegal trading services in the forex and digital assets sector without the necessary licenses. Some of the websites include fasat-g.pro and market-trading.ltd.
New Registration Requirements
Every service provider dealing in digital assets is now required to register with the Cyprus SEC. Noncompliance can lead to fines up to $370,000 or custodial sentences of up to five years.
Impact of Gamification on Investors
Recent research indicates a rise in unregulated, volatile investment products, raising concerns among regulators. Many investors fail to conduct proper due diligence, with only 30% checking with the country's regulator to verify their broker's licensing.
The introduction of new regulatory measures and educational campaigns aims to protect investors and highlight the risks associated with online trading.
