CapitalPanda and ProfitLevel Operator Pays €170K to Settle with CySEC

The Cyprus Securities and Exchange Commission (CySEC) has settled with BCM Begin Capital Markets CY Ltd for possible regulatory violations, the supervisor announced on Wednesday. The company, which operates multiple retail trading brands, paid €170,000 as a part of this settlement.

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According to the Cypriot financial market supervisor, the trading platform operator possibly violated two specific laws: one is regarding general principles and information to clients and the other is around some requirements for CIF authorization.

“Α settlement has been reached with the CIF BCM Begin Capital Markets CY Ltd («the Company») for possible violations of the Investment Services and Activities and Regulated Markets Law of 2017 – L.87(I)/2017,” CySEC stated.

The regulatory action came after an investigation into the company's operations between January 2021 and April 2022.

BCM Begin Capital Markets, previously known as OX Capital Markets Limited, operates multiple brands, including CapitalPanda and ProfitLevel. They offer counterparty trading services with instruments of forex , equities and other asset classes.

Heightened Market Supervision

CySEC, which oversees all financial services platforms registered on the Medeterinian island, has become very vigilant and is actively taking action against companies for regulatory violations. Most recently, it settled with Forex TB, another forex and CFDs broker, which paid €270,000 in the process. Other such actions include €150,000 and €100,000 settlements with the Cypriot division of CFI Financial and Finteractive Limited, the operator of trading brand FXVC, respectively.

Further, the Cypriot regulator fined and banned four former and current directors of Maxigrid, a brokerage operator that lost its Cyprus Investment Firm (CIF) license in February. It even initiated a compensation process for Maxigrid clients under the ICF scheme.

Meanwhile, the regulator is banning unauthorized trading platforms by regularly flagging them, which are mostly cases of fraud or clones of legitimate platforms.