Broker Warned by BaFin Faces Similar Caution from CNMV Three Months Ago

Highlights

• Relative to the UK, Linq Capital is a corporation that has caught the attention of regulators.
• There is no such place as the company’s purported Richardschester headquarters.
• The Spanish National Securities Market Commission (CNMV) and the German regulator BaFin have both released advisories on Linq Capital.
• Trading FX/CFDs with Linq Capital is available at an incredibly high leverage of 1000:1.
• A similar Pepperstone FX/CFD brokerage clone had already been reported by the CNMV in 2023.

CNMV Issues Warning as Linq Capital Joins Watchlist

Ten additional companies were placed to the warning list by the Spanish National Securities Market Commission (CNMV) on May 27. Among them is Linq Capital, which provides FX/CFD trading with an unexpectedly high leverage of 1000:1.

The company states that it is registered in the United Kingdom, and by cold calling, its personnel purportedly propose that it is in compliance with legislation from well-known European supervisory commissions. 

Richardschester, the purported location of Linq Capital’s headquarters, is a fictional place. In addition, the company was added to the alert list in February by the German regulator BaFin.

Linq Capital Faces Regulatory Scrutiny and Suspicion Amid Lack of Oversight

It operates without the required regulations, as BaFin had warned. Everything suggests that there is no regulation of Linq Capital in Germany, Spain, or, most likely, any other country. 

“According to CNMV records, these institutions are not registered in the corresponding registry of this Commission and, therefore, are not authorized to provide investment services or other activities subject to the CNMV’s supervision,” according to CNMV records.

The company’s primary headquarters’ fictitious address raises the possibility that its business plan is a scam.

Regulatory Warnings and Fines: Recent Developments in European Financial Markets

The German market watchdog released a fresh alert one week ago about pepperstone.vip, a website that is a replica of Pepperstone GmbH, a retail broker. Back in 2023, CNMV discovered a comparable Pepperstone FX/CFD brokerage clone. 

Meanwhile, N26, a neobanking company, was fined EUR 9.2 million by BaFin for failing to report suspicious activity in 2022. 

The most recent CNMV action was recently covered by Finance Magnates a few months ago, when the Spanish regulator sent out a notice on eighteen unregistered investment enterprises, comprising a variety of suppliers of FX/CFD and cryptocurrency services.