Spain Issues Red Alert on 18 Unregistered Investment Firms

Spain Issues Red Alert on 18 Unregistered Investment Firms

Time Stamp: February 26, 2024 5:24 AM
Spain Issues Red Alert on 18 Unregistered Investment Firms PlatoBlockchain Data Intelligence. Vertical Search. Ai.

The
National Securities Market Commission (CNMV) of Spain has released a statement
today (Monday) warning investors about 18 investment companies that are not
registered to operate in Spain.

These
unregistered firms do not have authorization from the CNMV to provide
investment services or engage in activities under the Commission’s supervision.

The full
list of companies that received warnings from the CNMV includes a mix of FX/CFDs
and crypto companies. The CNMV has urged investors to exercise caution when
approached by any unregistered firms offering investment services in Spain.

The updated
warning list includes:

  • toptiercapital.org
    (Top Tier Capital),
  • bitbinx.ltd
    and bitbinx.com (Bitbinx),
  • cryptomaxitrade.com
    (CryptoMaxiTrade LTD),
  • innovativefxtrade.com
    (InnovativeFX Trade),
  • globgraph.com/es
    (SIF – Swiss Investments Funds),
  • maxbreadinx.com
    (Breadinx),
  • universaltrade.io
    (Universal Trade),
  • crytomerge.com
    (Crytomerge),
  • activefinancial.trade
    (Active Financial),
  • noventus-partners.io
    (Noventus),
  • livingtradefx.com
    (Livingtradefx),
  • bbcapitals.com
    and BB Capital (Broker Bank Capitals),
  • axiainvestments.com/es
    (Axia Trade),
  • Smarttool
    Trading SC Limited,
  • dynastyofcryptos.com
    (Dynasty of Cryptos and Platinumhitech),
  • microngroup.pro
    (Micron Group),
  • up-markets.com
    (Up Markets),
  • circulodeinversion.com
    (Circulo de Inversion).

This is
another major update to the warning list after CNVM added 14 new entities to it
at the end of January.

Investors
can verify an institution’s registration status by contacting the CNMV
investor service line. Those who received offers from unauthorized
entities on the warning list can inform the CNMV through the website’s enquiry
form or infringements communication channel.

Spain Has Introduced Further
Restrictions on CFDs

The latest
statement comes as the regulator continues its supervision and enforcement
efforts to protect investors in Spain.

CNMV has
recently enforced additional limitations on the marketing, distribution, and
sale of CFDs products. These enhanced regulations, effective from 20 July 2023,
prohibit marketing activities and strategies targeting retail investors or the
broader public for CFDs. This prohibition extends to the engagement of sales
representatives, call centers, sponsorship of events, and the use of public
figures to endorse CFDs.

The CNMV
asserts that these supplementary measures are necessary and balanced, building
upon the initial CFD constraints set by Spain in 2019 and those established by
the European Securities and Markets Authority in 2018 at the European Union
level.

Following
the announcement of these stricter regulations in Spain, there was a notable
downturn in the share price of the Polish online brokerage firm XTB on the
Warsaw Stock Exchange. Nevertheless, XTB subsequently clarified that the impact
of the new regulations on its business operations has been “minor,”
with no considerable effect on its rate of acquiring new customers.

The
National Securities Market Commission (CNMV) of Spain has released a statement
today (Monday) warning investors about 18 investment companies that are not
registered to operate in Spain.

These
unregistered firms do not have authorization from the CNMV to provide
investment services or engage in activities under the Commission’s supervision.

The full
list of companies that received warnings from the CNMV includes a mix of FX/CFDs
and crypto companies. The CNMV has urged investors to exercise caution when
approached by any unregistered firms offering investment services in Spain.

The updated
warning list includes:

  • toptiercapital.org
    (Top Tier Capital),
  • bitbinx.ltd
    and bitbinx.com (Bitbinx),
  • cryptomaxitrade.com
    (CryptoMaxiTrade LTD),
  • innovativefxtrade.com
    (InnovativeFX Trade),
  • globgraph.com/es
    (SIF – Swiss Investments Funds),
  • maxbreadinx.com
    (Breadinx),
  • universaltrade.io
    (Universal Trade),
  • crytomerge.com
    (Crytomerge),
  • activefinancial.trade
    (Active Financial),
  • noventus-partners.io
    (Noventus),
  • livingtradefx.com
    (Livingtradefx),
  • bbcapitals.com
    and BB Capital (Broker Bank Capitals),
  • axiainvestments.com/es
    (Axia Trade),
  • Smarttool
    Trading SC Limited,
  • dynastyofcryptos.com
    (Dynasty of Cryptos and Platinumhitech),
  • microngroup.pro
    (Micron Group),
  • up-markets.com
    (Up Markets),
  • circulodeinversion.com
    (Circulo de Inversion).

This is
another major update to the warning list after CNVM added 14 new entities to it
at the end of January.

Investors
can verify an institution’s registration status by contacting the CNMV
investor service line. Those who received offers from unauthorized
entities on the warning list can inform the CNMV through the website’s enquiry
form or infringements communication channel.

Spain Has Introduced Further
Restrictions on CFDs

The latest
statement comes as the regulator continues its supervision and enforcement
efforts to protect investors in Spain.

CNMV has
recently enforced additional limitations on the marketing, distribution, and
sale of CFDs products. These enhanced regulations, effective from 20 July 2023,
prohibit marketing activities and strategies targeting retail investors or the
broader public for CFDs. This prohibition extends to the engagement of sales
representatives, call centers, sponsorship of events, and the use of public
figures to endorse CFDs.

The CNMV
asserts that these supplementary measures are necessary and balanced, building
upon the initial CFD constraints set by Spain in 2019 and those established by
the European Securities and Markets Authority in 2018 at the European Union
level.

Following
the announcement of these stricter regulations in Spain, there was a notable
downturn in the share price of the Polish online brokerage firm XTB on the
Warsaw Stock Exchange. Nevertheless, XTB subsequently clarified that the impact
of the new regulations on its business operations has been “minor,”
with no considerable effect on its rate of acquiring new customers.

Time Stamp:

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