Following a tumultuous several months for Cyprus and UK registered broker AFX, the company has now had its Cypriot Forex license revoked by the Cyprus Securities and Exchange Commission. The actions of the regulator come as no surprise, as the broker was already under investigation by the island regulator, as well as the UK’s Financial Conduct Authority regarding irregularities with customer funds, specifically lack of funds protections, as well as failures to maintain adequate capital.
It will be interesting to see how this situation plays out and if CySEC will be able to handle the incoming disputes from AFX customers. Furthermore, if significant customer funds are blocked or missing, it would likely out CySEC on the hook for providing compensation to customers who have lost funds due to the company.
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