HTFX Exits Cyprus as CySEC Withdraws Investment Firm License

HTFX (EU) Ltd has formally exited Cyprus’ regulated investment framework after the Cyprus Securities and Exchange Commission (CySEC) confirmed the withdrawal of the broker’s Cyprus Investment Firm (CIF) licence. The move follows HTFX’s decision to voluntarily surrender its authorization.

CySEC Formalizes Voluntary Exit

In a regulatory notice, CySEC stated that the withdrawal finalizes HTFX’s request to renounce its CIF status, bringing an end to its supervision under the Cypriot regulatory regime.

As a result, HTFX is no longer authorised to offer investment services or carry out regulated investment activities in or from Cyprus. The company remains subject to residual legal obligations, including client communications and any wind-down measures associated with its former regulated operations.

Rising Compliance Costs in Focus

HTFX’s departure comes amid mounting regulatory costs in Cyprus. Earlier this month, CySEC launched a consultation proposing higher application and annual fees for Cyprus Investment Firms, third-country branches, and market operators. The regulator also plans to introduce new charges linked to material changes in business models and algorithmic trading activity.

Proposed Changes to CIF Fee Structure

Under the proposal, CySEC intends to overhaul the existing fee framework to better align licensing costs with a firm’s size, turnover, and business activities. The draft also removes outdated charges, including a standalone fee for crypto-related authorizations, which have largely been absorbed under the EU’s Markets in Crypto-Assets (MiCA) regulation.

Key proposed adjustments include:

• Replacing the current flat €7,000 fee with a €8,000 charge per investment service
• Introducing a higher €15,000 fee for firms dealing on their own account
• Increasing fees for operating a multilateral or organized trading facility (MTF/OTF) to €30,000 from €25,000

If implemented, the changes would significantly raise both the entry and ongoing costs of holding a CIF licence.

Part of a Wider Industry Shift

HTFX joins a growing number of FX and CFD providers that have stepped away from the CySEC regime over the past year, pointing to a broader restructuring of Cyprus’ investment services sector.

Other firms that have relinquished their CIF authorizations include Alvexo operator VPR Safe Financial Group, BDSwiss’ B2B arm Viverno Markets, Royal Forex, and Globia Wealth.

The trend highlights an ongoing reassessment by brokers of regulatory expenses, operational flexibility, and jurisdictional strategy as Europe’s compliance environment continues to tighten.