CySEC canceled CIF license of Stone Edge Capital

The Cyprus Securities and Exchange Commission (CySEC) has withdrawn the Cyprus Investment Firm (CIF) license of Stone Edge Capital Ltd. The decision was made due to the company's non-compliance with the regulatory framework.

Stone Edge Capital Ltd. is no longer authorized to provide investment services or perform any other activities related to the financial markets. The company has been ordered to settle all its obligations within three months from the date of the decision.

The decision was made at a meeting held on March 27, 2023 but was announced today. The regulatory move is in accordance with sections 8(1)(c) and 71(6)(c) of the Investment Services and Activities and Regulated Markets Law of 2017 (‘the Law 87(I)/2017’) and section 59(6)(a)(iii) of the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007.

The CySEC reached the above decision, as the company did not comply with:

1. section 22(1) of Law 87(I)/2017 due to the Companys non-compliance with the licensing condition set out in section 17(6) of the Law 87(I)/2017, as further elaborated in section 17(7)(a) of the said law and section 76 of the Regulation 2017/565 (organizational requirements).

2. section 58(e) of the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007, as it was in force (the ‘Law 188 (I)/2007’) and paragraph 26 of CySECs Directive of Prevention and Suppression of Money Laundering and Terrorist Financing Law, as it was in force, due to failing to apply adequate and appropriate systems and procedures in relation to the thorough examination of any transaction which is considered by its nature to be particularly susceptible to be linked to money laundering or terrorist financing offences and in particular complex or unusually large transactions and all unusual types of transactions carried out without an apparent economic or clear legal justification.

3. section 58(c) of the Law 188(I)/2007, as it did not apply adequate and appropriate systems and procedures regarding the internal reporting and reporting to MOΚAS, since its systems and procedures did not comply with the provisions of section 69(1)(a) of the said law.

CySEC's decision to withdraw Stone Edge Capital's CIF license is part of its ongoing efforts to ensure the protection of investors and the integrity of the financial markets in Cyprus.

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