By Staff Writer
Cyprus’ financial regulator has formally withdrawn the Cyprus Investment Firm (CIF) licence of HTFX (EU) Ltd, following the company’s decision to voluntarily exit the Cypriot regulatory regime.
In a statement, the Cyprus Securities and Exchange Commission (CySEC) confirmed that the withdrawal formalises HTFX’s renunciation of its authorisation, bringing an end to its status as a CySEC-supervised investment firm.
With the CIF licence now withdrawn, HTFX is no longer permitted to offer investment services or carry out regulated investment activities in or from Cyprus under that authorisation.
CySEC noted that the decision was taken at the firm’s request, rather than as a result of an enforcement action or regulatory breach. However, despite surrendering its licence, HTFX remains subject to residual legal obligations under Cypriot law and relevant EU directives.
Neither CySEC or HTFX disclosed details behind why the brokerage opted to relinquish its licence. However, the licence withdrawal comes amid broader changes to Cyprus’ regulatory landscape.
Less than two weeks ago, CySEC unveiled proposals that would significantly increase the cost of operating as a regulated investment firm in the country.
Under the proposed framework, application and annual fees for Cyprus Investment Firms, foreign branches, and market operators would rise, while new charges would be introduced for material change notifications and algorithmic trading activities. At the same time, CySEC suggested removing certain crypto-related fees under the EU’s Markets in Crypto-Assets (MiCA) regulation.
The proposed changes have sparked debate within the industry, particularly among smaller brokers and firms assessing the long-term cost-benefit of maintaining a Cyprus licence.
Cyprus remains one of Europe’s most popular jurisdictions for retail trading firms, particularly for forex and CFDs. However, rising compliance expectations and increasing supervisory costs seem to be prompting some firms to reassess their regulatory focus.
HTFX’s exit highlights a growing trend of brokers consolidating licences, shifting focus to alternative jurisdictions, or restructuring their regulatory footprint as operating conditions change.
The likes of Royal Forex, Viverno Markets, and several other CFD brokers have also moved away from Cyprus’ regulatory sphere, either by voluntarily renouncing or having their CIF authorizations withdrawn.
