CySEC Announces HYCM (Europe) Ltd’s Voluntary CIF License Surrender

On Tuesday, the Cyprus Securities and Exchange Commission (CySEC) announced that HYCM (Europe) Ltd, a multi-asset brokerage firm, has voluntarily surrendered its Cyprus Investment Firm (CIF) license. This change came into effect on June 10, 2024.

About HYCM

HYCM operates globally under several entities: HYCM Capital Markets (UK) Limited, HYCM (Europe) Ltd, HYCM Capital Markets (DIFC) Ltd, and HYCM Limited, all part of the HYCM Capital Markets Group. This corporation serves clients across Asia, Europe, and the Middle East. In May, HYCM introduced a new feature on its MT5 platform where investors can trade the world’s leading stocks with zero commissions. 

The Decision 

CySEC decided during its meeting on June 10, 2024, to withdraw the license. This action aligns 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. The withdrawal is because HYCM (Europe) Ltd voluntarily chose to renounce its authorization.

However, CySEC did not specify the reason for HYCM’s decision to surrender its authorization. Recently, many regulated brokers have voluntarily chosen to do so, unrelated to regulatory issues. Upon visiting HYCM’s website, it appears they have already updated it to remove any mentions of being authorized and supervised by CySEC.

The Effect is Visible 

When visiting HYCM’s website, it is evident they have removed all mentions of being authorized and supervised by CySEC. As of now, HYCM is no longer licensed or regulated by CySEC and cannot offer financial or related services. CySEC has given the broker a three-month period from this date to settle any obligations related to their investment services, during which they will remain under the supervision of the Cypriot watchdog.

What Does It Mean?

According to the Cypriot regulatory rules, HYCM is required to refund all remaining balances to its clients and address any complaints they may have. Additionally, the company must obtain a confirmation from its external auditor stating that there are no outstanding obligations. The announcement from CySEC also specifies that HYCM needs to provide detailed information about each of its clients. These measures ensure compliance with regulatory requirements and protect the interests of HYCM’s clients during this transition period.

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