CySEC Revokes FXTM's CIF Authorization Following Company’s Renunciation

On May 20, 2024, the Cyprus Securities and Exchange Commission (CySEC) revoked the Cyprus Investment Firm (CIF) authorization of Forextime Ltd (FXTM). This action followed FXTM’s decision to renounce its authorization.

Why this matters: The revocation of FXTM's CIF authorization has significant implications for the retail FX industry and its clients. This development may lead to changes in the company's operations and potentially affect its clients' investments.

The revocation, which was decided during a CySEC meeting on the same day, involved the CIF authorization number 185/12. The decision was made in accordance with the Investment Services and Activities and Regulated Markets Law.

FXTM did not provide any comments regarding the revocation at the time of publishing. Additionally, no judicial review was applicable or undertaken in this matter.

Forextime Ltd, more commonly known as FXTM, is a well-known retail FX broker that had been authorized to operate in Cyprus under the CIF license since December 2012. The revocation of the CIF authorization means that FXTM is no longer authorized to operate as a Cyprus Investment Firm.

The company had already ceased operations under its Cypriot entity by December 31, 2023, and had stopped offering services to retail clients in the EU in February 2021. Since then, FXTM had focused on professional clients and institutional traders in the European Economic Area (EEA) region. The latest move signifies a complete withdrawal from the EU market.

In 2020, FXTM and Alpari brands were consolidated under the Exinity Group, indicating a strategic shift in their operations. The CySEC's decision to revoke the CIF authorization was announced on May 24, 2024.

The revocation of FXTM's CIF authorization may have significant implications for the company's operations in Cyprus and its clients. However, the exact nature and extent of these implications are not specified.

This development is significant for the retail FX industry, as FXTM is a well-known online forex broker. The revocation of its CIF authorization may have implications for the company's operations and clients.

Key Takeaways

• CySEC revokes FXTM's CIF authorization on May 20, 2024.
• FXTM renounced its authorization, leading to the revocation.
• FXTM ceased EU retail operations in Feb 2021, focusing on pro clients.
• The revocation marks a complete withdrawal from the EU market.
• The move may impact FXTM's operations and clients, but details are unclear.