The Cyprus Securities and Exchange Commission, CySEC, has temporarily suspended the license of the Cypriot Investment Firm (CIF) Belight Capital Group, a BelightFX online trading brand management company. The regulator drew attention to the inactivity of the forex broker recently.
CySEC has recently announced report break for forex brokers amid COVID-19. The pandemic prompted Cypriot regulator to make some concessions and soften regulations.
The commission accused the brokerage company of violating several articles of the Law relating to equity requirements, as well as related to management requirements. Meanwhile, the main point of the prosecution was the remark that apparently, the company has not provided investment services over the past six months.
BelightFX is registered in Nicosia (Cyprus) and offers a mass retail client trading Forex and CFD instruments through a website that works in only one language version (English).
Thus, the regulator ordered the company to correct the revealed violations; otherwise, it might face new fines or even a full revocation of the license. In particular, BelightFX has 15 days to take the necessary actions to meet the requirements of the regulator. During this period, the broker cannot provide services or enter into partnerships with third parties in order to attract new customers.
Besides, the forex broker is deprived of the capacities to provide financial services to its clients in Cyprus or abroad.
Also, the brand does not have the right to promote itself as a provider of investment services or to give other advertising of similar content. The company must also close all open positions under customer contracts if and also return any funds and profits received by existing customers.
It is currently unknown what will be the steps taken from BelightFX. It is likely to take some measures to regain the lost license.