Key Insights
- CySEC has announced the withdrawal of the CIF license of Forex broker AAA Trade
- The decision follows AAA Trade’s express renunciation of its license
Nicosia (MarketsXplora) – The Cyprus Securities and Exchange Commission (CySEC) has announced the withdrawal of the Cyprus investment firm (CIF) authorization of Forex broker AAA Trade, following the company’s decision to expressly renounce its license.
The decision, which was made at a CySEC meeting on March 4, 2024, is pursuant to section 8(1)(a) of the Investment Services and Activities and Regulated Markets Law of 2017 and section 4(7) of Directive DI87-05.
“CySEC’s decision to withdraw AAA Trade’s license reflects the company’s own request to renounce its authorization,” said Nikos Georgiades, the Chairman of CySEC. “As the regulator, our role is to ensure the integrity of the Cypriot financial system and protect investors, and this action is in line with those objectives.”
According to CySEC’s website, AAA Trade operates via two approved domains: www.aaatrade.com and www.cryptoexchanger.eu. The withdrawal of the company’s investment firm license means it is no longer authorized to provide investment services or activities in Cyprus.
Read also! CySEC Extends CIF License Suspension of FTX (EU) Ltd
“The withdrawal of AAA Trade’s license is a clear signal that CySEC will not hesitate to take decisive action against companies that fail to meet the necessary regulatory standards,” said financial analyst Stephen Ethan.
The move comes as part of CySEC’s ongoing efforts to maintain a robust regulatory framework and ensure compliance among financial firms operating in the country. The regulator has been proactive in addressing non-compliance issues, as evidenced by its recent extension of the suspension of FTX (EU) Ltd’s authorization until 2024.
“By swiftly addressing this case, the regulator is demonstrating its commitment to protecting investors and maintaining the integrity of the Cypriot financial sector,” Ethan added.