Cypriot brokerage operator, Coverdeal Holdings Limited is renouncing its Cyprus Investment Firm (CIF) license and has terminated all its activities.
The platform has announced its decision to exit its business by putting a notice on its website. The brokerage has already stopped taking any new clients and closed all positions of its existing clients.
“…the Company does not accept any new clients, and any existing clients will not be able to trade in their account or to enter any positions unrelated to the closing/termination of their open positions,” the notification stated.
“We kindly ask you to close/liquidate all open positions and withdraw any available balance on your account by 15/11/2020 at 18:00 GMT+3. The withdrawal of your funds will be processed in accordance with your valid documents.”
For the funds which were not withdrawn before the deadline, the brokerage transferred those to the Investor Compensation fund of the Cyprus Securities and Exchange Commission (CySEC).
Coverdeal offered investment and ancillary services, and operated multiple CySEC-regulated platforms: www.coverdealfx.eu; www.coverdealfx.cz; www.coverdealfx.pl; www.coverdealfx.sk; www.globtrex.com; www.coverdealfx.com; www.coverdeal.eu; and www.globtrex.co.za.
Despite notifying of the major decision, the holding company did not reveal the reasons behind the termination of services and renouncing its license.
The company received the license in 2014, and the regulator is now examining the authorization for the voluntary renunciation.
It is to be noted that Coverdeal settled with CySEC in 2018 for alleged regulatory violations, paying €250,000. Earlier this year, two other brokers, Hoch Capital Ltd, and Rodeler Ltd, renounced their CIF licenses following a monetary settlement with the regulator.
While some brokers are renouncing their CIF licenses, Pepperstone recently received a license from the Cypriot regulator.