Banxso, a CFD brokerage firm, has stopped accepting new clients under its Cyprus Investment Firm (CIF) license and is also facing regulatory challenges in South Africa. Finance Magnates reported that Banxso’s EU website is now mostly inactive, with services disabled, and the broker appears to be shifting away from its Cyprus operations.
Suspension of Cyprus Onboarding Despite Active License
A notice on Banxso’s EU website confirms that Banxso Ltd, licensed under CySEC (License Number 413/22), is no longer onboarding clients. Although the Cyprus license remains active, archived data suggests Banxso halted new client registrations in April, with only Cyprus residents allowed to join prior to this suspension.
The mandatory risk disclosure on Banxso EU’s site is also raising questions about regulatory compliance, as it does not specify the exact percentage of clients losing money on the platform a standard detail typically required for transparency in CFD trading.
Attempts to reach Banxso for comment have not yielded a response as of this report.
Regulatory Challenges and License Suspension in South Africa
In addition to halting its Cyprus operations, Banxso is also facing regulatory issues in South Africa, where its license was recently suspended by the Financial Services Conduct Authority (FSCA). The FSCA’s decision followed concerns about Banxso’s operational practices and the potential risks posed to clients. Additionally, a local agency froze Banxso’s bank accounts, although a court has since lifted this freeze under strict conditions.
While Banxso celebrated the unfreezing of accounts as a regulatory victory, the FSCA clarified that funds could only be used to facilitate the transfer of clients to another authorized provider. The broker’s license in South Africa remains suspended, and further withdrawals from the accounts are restricted.
Some South African clients have reported that Banxso representatives allegedly misled them about the status of the license and the resumption of trading services. Local media confirmed that Banxso continued to allow trading activity on its platform despite the suspended license, prompting the FSCA to investigate the brokerage and interview witnesses.
The unfolding regulatory actions in both Cyprus and South Africa highlight ongoing compliance challenges for Banxso, as it faces increased scrutiny from financial authorities on both fronts.
