Cyprus blocks 19 unauthorized crypto brokers
CySEC blacklists 10 unauthorized crypto and forex firms
The Cyprus Securities and Exchange Commission (CySEC) has intensified its oversight of the financial services industry, blacklisting around 10 crypto and forex trading firms for operating without authorization.
In its latest crackdown, the agency published a list of illegal platforms, including fasat-g.pro, market-trading.ltd, iqforextrade.net, and others, warning that these entities were offering financial services without the required Cyprus Investment Firm (CIF) licenses, reports Cryptopolitan.
Many of these firms reportedly misled users by falsely claiming connections to licensed brokers or using legitimate firms’ credentials to gain user trust.
To reinforce its regulatory stance, CySEC has mandated that any firm dealing in digital assets must be formally registered with the Commission. Non-compliance will result in severe penalties, including fines up to $370,000 and custodial sentences of up to five years—or both in certain cases. This regulatory shift aims to bolster investor protection and ensure a more transparent market landscape for digital finance in the region.
CySEC flags investor risks and deceptive marketing
CySEC also raised alarms over a surge in volatile and unregulated investment products targeting retail investors. According to the agency’s recent research, many retail investors fail to perform adequate due diligence before investing. A quarter of respondents admitted to spending just 6–7 days researching an investment product, while 7% said they conducted little to no research. Alarmingly, only 30% verified broker licenses on the regulator’s website, and 15% skipped verification entirely.
The regulator emphasized that this behavior increases vulnerability to scams and financial losses. It warned against the growing trend of “gamified” trading platforms and the influence of social media personalities or “finfluencers” promoting speculative investments. CySEC urged investors to be cautious and seek verified information through official channels, not flashy apps or influencer-driven hype.
Public education campaign combats fraud and FOMO
In response to rising fraud and emotional investing, CySEC has launched a national education campaign aimed at raising awareness about crypto and online trading risks. The campaign discourages reliance on colorful, user-friendly apps designed to make high-risk trading appear empowering, especially to young or inexperienced investors. The regulator’s message is clear: emotional decisions driven by the fear of missing out (FOMO) can lead to serious financial harm.
The campaign, supported by Cyprus’s broader financial regulatory framework, encourages investors to prioritize research, use official regulatory resources, and resist pressure from aggressive marketing tactics. With the regulatory landscape rapidly evolving, CySEC aims to strengthen its role as a watchdog, ensuring that both investors and platforms play by the rules in the expanding digital asset space.
Recently we wrote that six months after the full implementation of the European Union’s landmark crypto regulation, MiCA, 53 crypto-related entities have received authorization to operate legally across the EU’s 30-country bloc.
