A strictly regulated industry, with a decisive contribution to the economy.

Strict Supervision and Full European Compliance

Forex companies are financial institutions that are strictly supervised by the Cyprus Securities and Exchange Commission and other competent authorities internationally. They operate within very strict institutional and regulatory frameworks, fully implement European directives, and are subject to continuous, regular, and substantive audits. Supervision is strict, institutionally established, and aligned with European standards.

No Connection Between Forex Trading and Boiler Rooms, Illegal Schemes, or Unregulated Activities

The recent Europol announcement regarding the dismantling of an international fraud ring exceeding €700 million concerned illegal call centers that provided unlawful investment advice and defrauded citizens. These activities operate outside supervision, outside the law, and outside the operating framework of forex companies. It was emphasized with absolute clarity that illegal schemes, such as so-called boiler rooms, have absolutely no connection with forex.

During the conference, it was strongly underlined that so-called boiler rooms do not constitute forex, just as betting companies, online casinos, or cryptocurrency exchanges are not forex. It was stressed that the indiscriminate use of the term for different and unregulated activities is incorrect and creates a distorted image of a strictly supervised financial sector.

Forex Companies Do Not Choose Cyprus Because of Lax Supervision

During the conference, claims that companies offering, among other services, forex trading choose Cyprus due to lax supervision were also rejected. It was pointed out that the Cyprus Securities and Exchange Commission fully implements the European regulatory framework, is subject to European supervisory evaluation, and conducts strict and systematic audits. The level of supervision is fully aligned with that of the other member states of the European Union.

They Do Not Provide Investment Advice or Promise Returns

Forex companies, in most cases, offer exclusively one service: the execution of trading orders through their electronic platforms in financial instruments such as CFDs on indices, currency pairs, gold, and others. They do not provide investment advice, do not manage funds, and do not promise returns.

Strict Procedures to Prevent Money Laundering and Terrorist Financing

Supervisory authorities worldwide, including the Cyprus Securities and Exchange Commission, as well as domestic and international banks, apply thorough checks and procedures both to forex companies themselves and to clients’ fund transfers and transactions.

A very important element is that companies implement procedures to prevent deposits and withdrawals by third parties. In other words, the trading account held by the investor with the company must be funded from a bank account or card belonging to the same person. Similarly, when an investor requests a withdrawal, the funds are transferred back to the same account, ensuring that the money is not transferred to any third party.

In this way, any risk of money laundering or terrorist financing is eliminated.

The Sector’s Contribution to the Country Is Proven

The contribution of the sector to the Cypriot economy was highlighted. The forex sector employs thousands of people, strengthens GDP, and attracts investment. It is a regulated and strictly supervised industry with decades of international presence in Europe and America. The organizers concluded that clearly distinguishing between regulated forex companies and illegal activities is not a matter of communication, but a matter of institutional accuracy and protecting the credibility of an important pillar of the Cypriot economy.

From Forex to Financial Technology

The term “forex trading” and, by extension, “forex companies” are often used in everyday language, but they represent an overly restrictive and outdated characterization that does not reflect the complexity and breadth of services that investment firms in the sector offer today. These terms appeared in the early stages of online platform development, when they were mainly focused on foreign exchange transactions. Although the terminology remained, both the sector and the products offered by investment firms have evolved far beyond their original starting point.

Today, the term “financial technology” or “fintech” more accurately reflects the current reality of the sector, as the services provided by investment firms include a broad range of financial instruments, such as CFDs on indices, commodities, shares, and others, supported by highly advanced technology and infrastructure. Client acquisition, deposits and withdrawals, and other related services are carried out through electronic platforms and other digital means, with emphasis on security and technological resilience.

It is a modern, technologically advanced financial sector.

source