CySEC Suspends Belight Capital License

CySEC has announced its decision to suspend the CIF authorization of Belight Capital Group Ltd. on Wednesday. The company trades and operates as BelightFX.

Belight Capital is a foreign exchange (forex) broker which the Cypriot regulator suspects to have allegedly violated the following:

Articles 92(1) and 93(1) of Regulation (EU) No 575/2013 relating to prudential requirements, regarding own funds and capital ratio

Section 22(1) of the Law, due to the Company’s possible non-compliance at all times with sections 9(16) of the Law

This is in relation to the obligations concerning its board of directors, and 17(1) and 17(2) of the Law. This is as specified in article 21(1)(d) of Regulation 2017/565, regarding its organizational requirements. 

Moreover, the Company does not seem to have provided investment services during the last six months.

By suspending Belight Capital’s licence, CySEC has exercised the power granted to it. That is under Article 70(1)(f) of the Investment Services and Activities and Regulated Markets Law of 2017.

CySEC Gives the FX Broker 15 Days to Comply

CySEC said in a statement, the above decision was reached as the aforementioned alleged violations cause concern and risk. This relates to the protection of the Company’s clients or investors.

 Also, it constitutes a threat to the orderly operation and integrity of the market.

The regulator said the Company has to take actions in order to comply with the aforementioned provisions within 15 days.

While under the suspension, the FX broker is not allowed to provide or carry out any investment services/activities. Nor can it enter into any business transaction with any person or accept new clients. 

Moreover, Belight Capital can’t advertise itself as a provider of investment services.

This news on Belight Capital followed days after CySEC had suspended the CIF License of UGL Exchange. The regulator suspected the FX retail brokerage firm of non-compliance with prudential requirements regarding own funds and capital ratio.