Reason for this visit

Cyprus has gradually become an active country in cryptocurrency trading. The regulatory framework for the cryptocurrency ecosystem in Cyprus is in line with the crypto legislation of the European Union, focusing mainly on consumer protection, anti-money laundering, and anti-terrorism financing. All institutions that provide cryptocurrency asset services must register with the financial regulatory authority, the Cyprus Securities and Exchange Commission (CySEC). There are also regulations regarding the source of operational funds and the detection and reporting of suspicious transactions through continuous transaction monitoring. Cyprus has a broad future development prospect in the blockchain finance field and is expected to become a global blockchain financial center, appealing to more blockchain companies, cryptocurrency exchanges, and investors. In an attempt to help investors gain a comprehensive understanding of cryptocurrency exchanges in Cyprus, WikiBit survey team decides to go to the country for on-site visits to local companies.

On-site visit

In this issue, the survey team went to Cyprus to visit cryptocurrency exchange FONDEX as planned according to its regulatory address that 19 Stratigou Timagia, 3rd Floor, CY 3107 Limassol, Cyprus.

On May 7, 2024, the investigators came to 19 Stratigou Timagia in Limassol, Cyprus for a visit to the exchanges office, and located a 3-story commercial building in a business district of the city. The building boasts convenient transportation with easy access to different places. There were some company logos displayed on the façade of the building, but excluding “FONDEX”.

Upon arrival at the building for further investigation, the survey personnel were aware of that both the 1st and 2nd floors were occupied by a giant retail market, and the 3rd floor was used for rental offices. Additionally, it was noticed that there was no floor directory in the building, and the “Spotware System” name was presented prominently on the nearby glass door.

Before reaching the entrance to the office at the back of the building, the inspection team first noticed a mailbox labeled “Spotware” and “cTrader”. While the elevator lobby on the 1st floor did not provide floor directory information, the team could still clearly see the “Spotware System” logo through a glass door. After proceeding to the 3rd floor, the name of “Spotware-Traders First” was prominently displayed outside the office.

Moreover, there were multiple forex company logos including TopFX on the wall. However, the logo of FONDEX couldnt be seen.

According to the website of Spotware, the software company specializes in providing cTrader trading system services. And the nearby company was potentially one of its trading software partners or providers. In the meantime, the survey team tried to visit the official website of FONDEX for its operational information, but the site was inaccessible, despite using different browsers.

Through the on-site investigation, it‘s confirmed that FONDEX doesn’t have a physical presence at the location.

Conclusion

The survey team went to Cyprus to visit cryptocurrency exchange FONDEX, but didnt find the company at its regulatory address. This denotes that the company might just register with the address without a physical business office at the place. Accordingly, investors should be meticulous in choosing the exchange.

Disclaimer

The content is for informational purpose only, and shall not be taken as a final order for making a choice.