The Cyprus Securities and Exchange Commission (SEC) has suspended the CIF authorization for Forex broker Daweda Exchange Ltd. following the discovery of a clone website and communications sent to customers of the broker. This follows the suspension of the CIF license by the regulatory authorities of Cyprus several months ago. To our knowledge this is the first time the regulator has punished an authorized company due to the presence of a clone entity and website, with which unknown individuals were giving traders the impression that they were clients of the Cyprus Investment Firm Daweda Exchange Ltd.

Specifically, CySEC stated that: “Daweda Exchange did not take the necessary steps to safeguard the privately owned URL (domain) of, from being used by Daweda Ltd (BVI). Evidence supports that Daweda Ltd (BVI) was using the email address, in order to send to its clients their login ID and password information to connect to the MT4.”

In addition, the regulator sighted senior management of the broker, indicating that several members of the Board of Directors did not effectively supervise the senior management of the company.