CNMV warns of unauthorized entities, including an eToro clone, engaging in risky FX/CFD services in the Spanish market.
CNMV warns of unauthorized entities, including an eToro clone, engaging in risky FX/CFD services in the Spanish market.
The Spanish Comisión Nacional del Mercado de Valores (CNMV) has expanded its warning list and warns against eToro clone, adding eight entities engaged in unauthorized activities related to FX/CFD services and crypto services for retail clients. The regulator has emphasized the potential risks associated with these entities, cautioning investors against their services.
Among the listed entities, one name that stands out is ExpToro, which resembles the well-known social trading brand eToro. This nomenclature similarity raises concerns about ExpToro potentially being a clone firm, employing a name and visual identity similar to reputable platforms like eToro to confuse investors.
CNMV, in its warning, highlights that these entities lack the necessary licenses and are not registered in the commission’s corresponding registry, making their activities unauthorized and potentially hazardous for investors. This move follows CNMV’s recent warnings about clone firms, including Bits Panda, which attempted to impersonate the popular cryptocurrency platform Bitpanda.
This regulatory action aligns with CNMV’s ongoing efforts to strengthen rules governing the marketing, distribution, and sale of Contracts for Difference (CFDs). These stricter regulations, implemented since July 20, have received approval from the European Securities and Markets Authority (ESMA) for being “justified and proportionate.”
The newly imposed restrictions explicitly prohibit promotional activities targeting retail clients or the broader public. This includes the use of sales representatives, call centers, or software providers for investor recruitment. The regulations build upon the CNMV’s 2019 guidelines and ESMA’s 2018 standards, aiming to enhance investor protection in the financial market.
In response to these regulatory changes, online investment service XTB acknowledges a “minor” impact on its business operations. While there haven’t been notable shifts in client acquisition pace, the company’s stock experienced a dip, reaching a four-month low. Moreover, The market continues to observe the repercussions of these regulatory measures on financial entities operating in Spain’s securities landscape.
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