Nicosia, Cyprus. A recent discussion focused on the forex sector’s role in the Cypriot economy and its institutional standing, highlighting regulatory oversight and compliance standards.
Strict supervision and European compliance
Forex companies were described as financial organisations strictly supervised by the Cyprus Securities and Exchange Commission and other competent international authorities. They operate within strict institutional and regulatory frameworks, implement European directives, and are subject to continuous, regular, and substantive audits. The supervision was described as strict, institutionally guaranteed, and aligned with European standards.
No relationship to boiler rooms or illegal schemes
It was emphasised that illegal schemes, including so-called boiler rooms, have no relationship with forex. The recent Europol announcement about dismantling an international fraud ring involving more than 700 million euros was said to concern illegal call centres that provided unlawful investment advice to defraud citizens. These activities were described as outside supervision, outside the law, and outside the operational framework of forex companies.
Distinction from other activities
The discussion also underlined that so-called boiler rooms do not constitute forex, and that forex was not described as comprising betting companies, online casinos, or cryptocurrency exchanges.
How do you assess the role of regulatory supervision in maintaining trust in the forex sector?
