CySEC withdraws license of Forex broker HYCM

The Cyprus Securities and Exchange Commission (CySEC) today announced the withdrawal of the Cyprus investment firm (CIF) authorisation of HYCM (Europe) Ltd.

CySEC made the decision at its meeting held on June 10, 2024. The withdrawal is in line with section 8(1)(a) of the Investment Services and Activities and Regulated Markets Law of 2017 and section 4(7) of Directive DI87-05 and is due to the company’s decision to expressly renounce its authorisation.

HYCM is a Forex and CFD broker. It was authorized to operate via the following approved domains: www.hycm.eu; https://help.hycm.com; www.henyep.com.

Earlier in 2024, FNG reported that HYCM is changing hands, in a management buyout.

The withdrawal of HYCM’s license by CySEC was officially announced in a recent decision published on the regulatory body’s website. The announcement detailed that HYCM voluntarily renounced its Cyprus Investment Firm (CIF) authorization, which led to the subsequent license withdrawal by CySEC. 

The voluntary nature of this renouncement suggests a strategic decision by HYCM to restructure or shift its regulatory alignment. HYCM, a prominent player in the forex trading industry, has been operating under CySEC’s oversight for several years. The firm’s decision to renounce its license comes amid a period of heightened regulatory scrutiny and evolving compliance requirements within the European financial markets. According to the official statement from CySEC, the renouncement and withdrawal were conducted in accordance with Article 8 of the Investment Services and Activities and Regulated Markets Law.

There is a post on the broker’s website with this information and contacts to contact if you have any questions. 

For HYCM, the renouncement of its CySEC license is part of a broader strategic realignment. The company stated that this move allows it to focus on other jurisdictions where it sees more strategic value and operational efficiency. “This decision is in line with our global business strategy to streamline operations and focus on key markets,” an HYCM spokesperson noted.

The firm continues to hold licenses in other major financial centers (FCA and DFSA), ensuring that it can maintain its operations and client services without significant disruption. The withdrawal of HYCM’s CySEC license is indicative of a larger trend within the financial services industry, where firms are reassessing their regulatory frameworks and making strategic decisions to optimize compliance and operational effectiveness. 

CySEC’s withdrawal of HYCM’s license represents a notable event in the regulatory domain, reflecting both the evolving nature of financial regulation and the strategic responses of major industry players. As the financial services industry continues to navigate complex regulatory landscapes, such developments will be closely watched for their broader implications on market operations and regulatory compliance.

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