The Cyprus Securities
and Exchange Commission has withdrawn the Cyprus Investment Firm authorisation
of Conotoxia Ltd, ending the firm’s regulated investment services activities in
Cyprus.
Conotoxia Ltd operated
as the investment services arm of the Conotoxia group. The company previously offered
trading in contracts for difference across multiple asset classes,
including foreign exchange, stocks, indices, commodities, ETFs, futures, and
cryptocurrencies.
CySEC Withdraws Conotoxia Licence
CySEC said the
decision was taken at a meeting held in December last year. According to the
regulator, the withdrawal followed the company’s failure to comply with ongoing
authorisation requirements under Cyprus investment services legislation.
The regulator said the
deficiencies related to several areas, including “the suitability of a member
of its board of directors,” the requirement to maintain “at least two persons
effectively directing its business activities,” the suitability of a shareholder,
and the firm’s organisational arrangements.
As a result, CySEC
concluded that the company “no longer fulfils the conditions under which its
authorisation was granted.”
CySEC Orders Complaints Investigation
Closure
The decision follows
earlier enforcement action against Conotoxia Ltd. The regulator noted that the
firm’s licence had been suspended since July last year under a separate
decision published on the same day.
Following the
withdrawal of authorisation, CySEC instructed the company to immediately remove
all references to providing investment services, as well as references to its
CySEC licence and supervision, from its websites and other materials.
It also
ordered the firm to investigate and resolve all customer complaints submitted
to it. In addition, Conotoxia must ensure it does not provide investment or
ancillary services following the withdrawal of its authorisation.
Recent developments in
Poland
involving Cinkciarz.pl and its related entities have added broader regulatory
context around parts of the wider Conotoxia group structure. Polish
prosecutors have expanded fraud charges against the group’s CEO and are
continuing their investigation into alleged client losses and frozen accounts.
This article was written by Tareq Sikder at www.financemagnates.com.
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