Forex broker HiWayFX renounces CySEC trading license, according to the latest announcement by the Cypriot regulator. What are the reasons for such measures?
19 May, AtoZForex – The Cyprus Securities and Exchange Commission (CySEC) has published an announcement in regards to now former brokerage with regulation, Lucro Capital. As the Cypriot regulator reports, the Forex broker decided to give up its CySEC trading license.
Forex broker HiWayFX renounces CySEC trading license
The Cypriot watchdog reports that the Forex broker Lucro Capital has decided to pull the plug in regards to its license from the regulator. The brokerage has two subsidiaries, www.hiwayfx.com, and www.hiwayfx.eu. This implies that the branches of Lucro Capital also will not have the authorisation to operate in Cyprus.
Presently, it is still unclear why the Forex broker decided the renounce the authorization from the Cypriot regulator. Nevertheless, The CySEC has highlighted that the company needs to settle all the obligations arising from the investment services that it was carrying out. Specifically, the firm has 3 months for the fulfillment of these requirements. Moreover, the announcement from CySEC states that it will supervise the operations of the financial services company until it will fulfill all the obligations:
‘It is noted that, in accordance with section 25(4) of the Law, the Company remains under the supervision of the CySEC until it settles its obligations arising from the investment services or/and activities that lapsed.’
HiWayFX EU website shut down
I have tried to research the case further. However, while trying to access the European website of the firm, I faced an obstacle. The company has apparently shut down the website. Despite this, the other general website is still operational. I also have tried to reach out to the company via the phone line, but no one answered my call.
The website of the company is claiming that it operates under the control of Hiway Markets Ltd, Gibraltar with the registration no. 113204. Furthermore, the company that goes with the name Hiway Capital Ltd. claims to provide the services via this online platform. The website states that the latter company has its address at Saint-Vincent and the Grenadines. The registration number of Hiway Capital Ltd is 21980.
The Lucro Capital has received its Forex trading license from the CySEC in 2014. Back then, the company has been accepting clients to set up trading accounts without any identification documents.
Afterward, in 2015, HiWayFX has launched a Binary Options trading system. Gwazy was in control of the operations of the new trading platform.
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