CySEC Flags Unauthorised Investment Platforms Operating Without Regulatory Approval

The Cyprus Securities and Exchange Commission (CySEC) has warned about 14 websites offering investment services without legal permission under local rules. One of these is a fake site pretending to be the well-known broker Admirals (formerly Admiral Markets). This copycat website, admiralmarket.net, uses the real broker’s logo, design, and branding to fool investors.

CySEC reminded the public that all firms offering investment services in Cyprus must be licensed under Article 5 of Law 87(I)/2017, which matches EU financial rules. The regulator urges people to visit its official website (www.cysec.gov.cy) to check if a company is licensed to operate.

CySEC Targets Clone Scams And Orders Viverno Markets To Shut Down Operations

Scam websites that imitate real brokers are becoming more advanced and harder to spot. Admirals is often targeted by such scams. CySEC said that these fake sites use similar names and visuals to mislead people who don’t check the platform’s legal status before sending money.

In another update, CySEC has withdrawn the investment license of Viverno Markets Ltd, which was the business-to-business branch of BDSwiss. The regulator found that the firm had not carried out any investment activities for at least six months before its license was put on hold.

Following the license removal, Viverno Markets must shut down its services in line with CySEC rules. It is required to post an announcement on all its websites, explaining the license withdrawal and the steps clients need to take to finish their transactions, get back their funds and financial instruments, and submit complaints.

According to the update, the company must also contact each client directly using the same methods it used before. It must return all client funds and assets, including any profits owed. Moreover, Viverno Markets is not allowed to offer any more investment or extra services. It must keep its offices open to manage this closing-down process and help clients.

CySEC Aims To Strengthen Investor Protection And Uphold EU Financial Standards

CySEC had earlier fully suspended Viverno Markets’ license. The company had offered liquidity and tech solutions to other CFD brokers. CySEC also questioned whether the firm met rules that require at least two people to properly manage a licensed investment company.

CySEC is Cyprus’s financial regulator. As part of the European Union, CySEC’s rules follow the EU’s MiFID system. This allows companies registered in Cyprus to work across the EU. Many global forex brokers are registered under CySEC. In the past, Cyprus was also a popular base for binary options brokers.

The regulator was created as a public authority under local law. After Cyprus joined the EU, CySEC became part of the shared European financial system, helping the country move away from its former image as a tax haven.

CySEC was the first regulator worldwide to classify binary options as financial instruments. It later banned binary options trading for regular investors.