The Cyprus Securities and Exchange Commission has officially withdrawn the investment firm authorisation of Conotoxia Ltd, terminating its regulated operations in Cyprus following a suspension that began in July last year. The CFD provider, which offered trading across forex, stocks, indices, commodities, ETFs, futures, and cryptocurrencies, failed to meet ongoing authorisation requirements under Cypriot investment services law.
CySEC cited multiple compliance failures at a December meeting, including unsuitable board members, failure to maintain two persons effectively directing business activities, shareholder suitability issues, and inadequate organisational arrangements. The regulator concluded Conotoxia no longer meets the conditions under which its licence was originally granted.
The firm must immediately remove all references to CySEC authorisation from its platforms, resolve outstanding customer complaints, and cease all investment and ancillary services. The action comes amid broader regulatory scrutiny, with Polish prosecutors expanding fraud charges against the wider Conotoxia group’s CEO over alleged client losses and frozen accounts.
FXnCO Insight
Traders with open positions or funds at Conotoxia Ltd should immediately contact the firm regarding account closure procedures and fund repatriation before liquidation processes complicate withdrawals.
Source: Finance Magnates