NordFX, a well-known provider of forex and CFD services, has raised concerns within the trading community due to its recent affiliation with a previously CySEC-regulated entity that now functions as a payment agent.
NordFX has notified FinTelegram that the operator, NFX Capital VU Ltd, has shifted its registration from Vanuatu to St. Lucia.
This change has significant implications for traders, as their client agreements are now linked to an unregulated offshore entity.
NordFX has explicitly disclaimed responsibility for the accuracy of information on its website.
NordFX, founded in 2008 or 2009, has undergone several legal entity transformations across different jurisdictions.
It was formerly operated in Europe by CySEC-regulated NFX Capital CY Ltd, which later became Inveza Capital Ltd.
Despite the Inveza website being offline, the entity still serves as a payment agent for NordFX.
Previously headquartered in Vanuatu, NordFX has now relocated to St. Lucia, with a primary focus on the Asian market, offering exceptionally high leverage of up to 1:1,000.
However, the broker has witnessed a substantial decline in website traffic, plummeting from nearly 500,000 daily visitors to approximately 233,000 in November 2023.
NordFX claims to boast more than 2 million clients and 29,000 affiliates, although the accuracy of these figures is currently under scrutiny.
It is worth noting that despite NordFX’s assertion that it does not accept clients from North America and the EU, there remains a possibility of EU residents registering on the platform.
Over the past two years, Vanuatu has transitioned from being an offshore jurisdiction to regulating digital assets under the amended Financial Dealers Licensing Act.
Licensees such as Deriv, TMGM, Axi, and Titan FX have shared their experiences, highlighting challenges like staffing shortages and the necessity for collaboration among regulatory bodies.
In a significant development, the Cyprus Securities and Exchange Commission has officially revoked the operating license of Inveza Capital Ltd.
This company, previously known as NFX Capital Cy Ltd and Vinst Capital Limited, had obtained its license in August 2013, enabling it to provide investment services through the website inveza.com.
The revocation of the Cyprus Investment Firm authorization was executed in accordance with the Investment Services and Activities and Regulated Markets Law.
Although the announcement was made recently, the regulatory board had reached this decision over two months ago, on December 5, 2022.