CySEC Announces €230,000 Settlement with Crowd Tech Ltd

The Cyprus Securities and Exchange Commission(CySEC) Friday announced that it has reached a settlement agreement with Crowd Tech Ltd, holding a Cyprus Investment Firm (CIF) license.

As part of the settlement, the company has paid €230,000 to CySEC for possible regulatory violations. 

According to the Cypriot watchdog, the company has possibly violated the Investment Services and Activities and Regulated Markets Law of 2017 –L.87(I)/2017 (the Law) and the Regulation (EU) 600/2014 on markets in financial instruments.

More specifically, the investigation for which the settlement was reached, involved assessing, for the period January 2020 until June 2021, the company's compliance with:

1. Article 5(1) of the Law, regarding the requirement for CIF authorization.

2. Αrticle 22(1) of the Law as to the authorisation condition laid down in article 17(2) of the Law, regarding the organisational requirements a CIF is required to comply.

3. Article 25, paragraph (1) and (3), of the Law, regarding general principles and information to clients.

4. Article 42 of the Regulation 600/2014 as to complying with paragraph 5 of the CySEC's Directive DI87-09 for the Restriction on the Marketing, Distribution, and Sale of Contracts for Difference (CFDs) to Retail Clients (DI87-09), regarding the prohibition of participation in circumvention activities.

As Fazzaco previously reported, CySEC has withdrawn the Cyprus Investment Firm (CIF) licenses with Number 327/16 of IFC Investments Cyprus Ltd​. The decision to withdraw the license of the broker was taken by the Cypriot regulator on 12 September 2022 in a meeting. The regulatory further added that it was the company's decision to renounce its CIF license.