FXTM Relinquishes CySEC License and Moves Offshore
Retail FX and CFDs brokerage operator Forextime Ltd, known for its FXTM brand, has had its CIF licence withdrawn by Cyprus financial regulator CySEC. This decision follows Forextime Ltd renouncing the CySEC license it had held since 2012.
About the CySEC License Update
Retail FX and CFDs brokerage operator Forextime Ltd (FXTM) has renounced its CySEC licence, which it had held since 2012, leading to the withdrawal of the licence by Cyprus financial regulator CySEC. FXTM will continue its operations through entities in Kenya, South Africa, and Mauritius. While Exinity, FXTM’s parent company, holds an FCA licence, it conducts minimal business through this entity.
The renunciation of the CySEC licence signals FXTM’s strategic shift towards its offshore entities. While this move might affect its European customer base, it provides the company with greater operational flexibility in other regions.
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What Does It Mean for Users?
Here is what traders can expect from the new update in regulatory licence renouncing.
Regulatory Changes
With FXTM’s renunciation of its CySEC licence, users, especially those in Europe, may experience changes in regulatory oversight. The shift away from the CySEC-regulated environment might lead to differences in the level of investor protection and the regulatory standards they have been accustomed to.
Service Continuity
Despite the regulatory shift, FXTM aims to ensure that its services remain uninterrupted. Users can expect continued access to FXTM’s trading platforms and services through its entities in Kenya, South Africa, and Mauritius. The company’s commitment to operational stability in these regions should mitigate potential disruptions.
Operational Flexibility
FXTM’s move to offshore entities could result in more flexible trading conditions and potentially broader service offerings. Users might benefit from less stringent regulatory requirements, allowing for a more diverse range of trading options and features.
About FXTM
FXTM, also known as ForexTime, is a leading global forex broker that extends its services to traders around the world. FXTM offers a diverse range of trading instruments, including forex, stocks, indices, commodities, and cryptocurrencies. It also supports the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, alongside mobile trading options, providing flexibility and convenience for traders.
Way Ahead
While the relinquishment of the CySEC licence marks a significant change, FXTM’s strategic shift aims to balance operational flexibility with continued user support. By adapting to new regulatory landscapes and maintaining clear communication, FXTM strives to ensure a positive and uninterrupted trading experience for its global client base.
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