The Spanish
financial market regulator updated its warning list on Monday, adding ten new
entities. One company in particular draws attention, as this is not the only
warning it has received in recent months.
Linq Capital Added to
CNMV’s Warning List
On May 27,
the Spanish National Securities Market Commission (CNMV) added ten new entities
to its warning list, including Linq Capital, which offers FX/CFD trading with a
surprisingly high leverage of 1000:1.
The company
claims to be registered in the UK, and its representatives allegedly suggest
through cold calling that it holds regulations from popular European
supervisory commissions.
However, the city where Linq Capital is supposedly headquartered, Richardschester, does not exist. Moreover, the German regulator BaFin also placed the company on the warning list in February.
BaFin had
warned that it operates without the necessary regulations. Everything indicates that Linq Capital is not regulated in Germany, Spain, or, most likely, in any other jurisdiction.
“According
to CNMV records, these institutions are not registered in the corresponding
registry of this Commission and, therefore, are not authorized to provide
investment services or other activities subject to the CNMV’s supervision,”
commented CNMV.
The fake
address of the company’s main headquarters suggests that its business model is
a potential fraud.
Recent Regulatory Actions
A week ago,
the German market watchdog has issued another warning, regarding the website
pepperstone.vip, a clone of retail broker Pepperstone GmbH. CNMV flagged
similar clone of the Pepperstone FX/CFD brokerage back in 2023.
In the
meantime, BaFin imposed EUR 9.2 million fine on neobanking company N26 due to
deficiencies in reporting suspicious activities in 2022.
Finance
Magnates last reported on the newest CNMV’s actions few months ago, when the
Spain regulator issued alert on 18 unregiestered investment firms, including a
mix of FX/CFD and crypto services providers.
This article was written by Damian Chmiel at www.financemagnates.com.
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