The Cyprus Securities and Exchange Commission (CySEC) has recently announced a penalty of €3,650 against Conotoxia Ltd., a Cyprus-based investment firm. This decision was reached during a board meeting held on July 21, 2025. The penalty is a result of the firm’s failure to comply with specific provisions of the Directive for the Prevention and Suppression of Money Laundering and Terrorist Financing (Directive 157/2019).
Additionally, Conotoxia’s operational license has been suspended due to concerns that it may be violating regulations outlined in section 22(1) of The Investment Services and Activities and Regulated Markets Law of 2017. This action reflects suspicions regarding the firm’s adherence to the authorization conditions specified in various sections of the law.
The issues highlight a range of compliance failures. These include inadequacies related to the composition and effectiveness of the board of directors, the suitability of shareholders, and overall organizational structures outlined in both the law and related EU regulations like Delegated Regulation (EU) 2017/565.
CySEC has expressed clear intentions to uphold stringent regulatory standards to ensure fair and transparent practices within the financial sector, underlining its role as a watchdog tasked with protecting investors and maintaining the integrity of the market. This incident serves as a warning to other firms about the importance of adhering to regulatory guidelines and the potential consequences of neglecting such responsibilities.