ADVFN UK Market News

Category: Regulation and Compliance

  • Webull Enters EU Market

    Webull Enters EU Market

    Webull, the American trading app known for its commission-free investing platform, has officially launched its European operations by opening a new office in Amsterdam. This marks the company’s first direct entry into the European Union market, following its earlier expansion into the UK.

    The launch comes nearly a year after Webull Securities (Europe) B.V. received regulatory approval from the Dutch Authority for the Financial Markets (AFM) in September 2024. The company spent the intervening months preparing its infrastructure, compliance systems, and user experience for the European audience.

    What Webull Offers to Dutch Investors

    Dutch retail investors now have access to:

    • European and U.S. stocks, including fractional shares
    • European ETFs
    • U.S. options
    • Extended trading hours
    • Market news, educational content, and trading tools via the Webull mobile app

    The platform aims to attract users with competitive pricing and a user-friendly interface, positioning itself as a strong alternative to other retail investment platforms like Robinhood.

    Strategic Expansion Across Europe

    Webull’s Amsterdam office is just the beginning. The company plans to expand into other EU countries in the coming months, leveraging its existing infrastructure and regulatory experience. This move adds the Netherlands as the 14th market in Webull’s global portfolio, which spans North America, Asia Pacific, Europe, and Latin America.

    With over 24 million registered users globally, Webull is betting on the growing demand for low-cost, accessible investing in Europe. According to Andries van Luijk, CEO of Webull EU, the European public is increasingly seeking investment opportunities that are both affordable and internationally diversified.

    A Growing Footprint in Europe

    Webull’s European journey began in 2023 with its UK launch under the Financial Conduct Authority (FCA) license. The Dutch expansion reflects the company’s commitment to building a strong presence across the continent.

    Anthony Denier, Group President and U.S. CEO of Webull, emphasized the strategic importance of the EU launch:

    “This expansion establishes our presence in Europe and reflects our commitment to making investing more accessible worldwide.”

  • CySEC’s 2025 CFD Crackdown: What Retail Traders Must Know About New Leverage Limits and Compliance Rules

    CySEC’s 2025 CFD Crackdown: What Retail Traders Must Know About New Leverage Limits and Compliance Rules

    The Cyprus Securities and Exchange Commission (CySEC) has introduced a sweeping update to its regulatory framework for Contracts for Difference (CFDs), marking a significant shift in how retail investors can engage with these high-risk financial instruments. The directive, published in the Official Gazette on September 5, 2025, aims to bolster investor protection and align Cyprus more closely with stricter EU jurisdictions.

    Key Changes Introduced by CySEC

    1. Leverage Restrictions on Specific CFDs
      One of the most impactful changes is the imposition of a 10% notional value cap on CFDs tied to certain previously unlisted commodities and stock indices. This effectively limits the leverage retail investors can use, reducing their exposure to volatile and speculative assets.
    2. Expanded Oversight and Compliance Requirements
      CySEC is reinforcing its oversight mechanisms by integrating the new directive with its existing 2019 CFD framework. This dual-layered approach is designed to prevent regulatory arbitrage and ensure consistent enforcement across the financial sector.
    3. Sanctions Enforcement Framework
      In response to evolving geopolitical risks, CySEC has rolled out a new framework to enforce EU and UN sanctions more effectively. This includes the creation of the National Sanctions Implementation Unit under the Ministry of Finance, which will monitor transactions, identify breaches, and require firms to report suspicious activity.
    4. Capital Adequacy and Governance Rules
      Starting in early 2025, CySEC will implement European Banking Authority (EBA) guidelines for FX and CFD brokers operating as Cyprus Investment Firms. These rules clarify the group capital test under the Investment Firms Regulation, focusing on:
      • Capital adequacyRisk managementGovernance structures
    5. Low-risk firms may apply for reduced capital requirements, but CySEC retains the authority to revoke such permissions if conditions change.

    What This Means for Retail Traders

    Retail investors trading CFDs under CySEC-regulated brokers will face:

    • Lower leverage, especially on high-risk instruments
    • Stricter onboarding and compliance checks
    • Reduced marketing and promotional offers, as CySEC continues to discourage aggressive sales tactics
    • Greater transparency and risk disclosures

    These changes are part of a broader EU-wide trend toward de-risking retail financial markets, especially in speculative products like CFDs and forex.

    Industry Impact and Future Outlook

    CySEC’s move is expected to:

    • Raise operational costs for brokers due to enhanced compliance and reporting requirements
    • Shift retail trading behavior toward more conservative strategies
    • Encourage broker consolidation, as smaller firms may struggle to meet the new capital and governance standards

    With over 830 entities under supervision and a €17.5 million budget for 2025, CySEC is positioning itself as a leading regulator in the EU, ready to tackle challenges from digital transformation to MiCA and DORA compliance.

  • Robinhood Expands to MENA Region with Dubai DFSA License Application and Key Executive Hire

    Robinhood Expands to MENA Region with Dubai DFSA License Application and Key Executive Hire

    In a strategic move to broaden its global footprint, Robinhood Markets Inc. (NASDAQ: HOOD), the prominent U.S.-based neobroker, has initiated plans to establish operations in Dubai. The company has formally applied for a Category 4 license from the Dubai Financial Services Authority (DFSA), signaling its intent to serve clients across the UAE and the wider Middle East and North Africa (MENA) region.

    The license, once approved, will enable Robinhood to operate from the Dubai International Financial Centre (DIFC), a leading financial hub in the region. This expansion marks a significant milestone in Robinhood’s international growth strategy, which has recently seen increased activity in Europe and Asia.

    To spearhead its MENA operations, Robinhood has appointed Mario Camara as Senior Executive Officer. Camara brings extensive experience in the FX and CFDs industry, having previously served as Senior Vice President of Licensing & Government Relations at Equiti Group. His tenure at Equiti spanned six years, following earlier leadership roles at Saxo Bank, where he was Managing Director for the MENA region based in DIFC.

    Robinhood’s move into Dubai follows a series of international initiatives, including the launch of its Legend desktop trading platform in the UK and sponsorship of French football club OGC Nice. The company has also introduced innovative products tailored to European investors, such as US stock and ETF tokens and perpetual futures.

    While Robinhood has been relatively quiet about its plans for the MENA region, the recent developments suggest a rapid acceleration of its presence in Dubai. A formal announcement detailing its regional strategy is expected in the coming weeks.

    This expansion aligns with Robinhood’s mission to democratize finance globally, offering accessible and innovative trading solutions to a broader audience.

  • Ultima Markets Buys Tiger Brokers UK in Strategic FCA License Grab

    Ultima Markets Buys Tiger Brokers UK in Strategic FCA License Grab

    In a bold and unexpected move, offshore CFDs broker Ultima Markets has acquired Tiger Brokers (UK) Ltd, securing a coveted FCA license and marking its formal entry into the UK’s highly regulated financial services market.

    The acquisition comes at a time when several brokers are exiting the UK due to rising regulatory costs and competitive pressures, making Ultima’s expansion a notable exception in the current industry trend.

    The deal, finalized in July 2025, was initiated in late 2024 when Tiger Brokers, a subsidiary of Nasdaq-listed UP Fintech Holding Ltd (TIGR), began winding down its UK operations. Ultima Markets injected £658,000 into the business to cover operational expenses during the transition, ultimately acquiring the dormant entity and its valuable regulatory status.

    The firm has since been rebranded as Ultima Markets UK Limited, allowing Ultima to bypass the lengthy and complex process of applying for a new FCA license from scratch.

    Tiger Brokers UK had been largely inactive in recent years, reporting zero revenue from 2021 to 2024 and accumulating £4.6 million in losses. At the time of acquisition, the firm held no client funds and had ceased onboarding new customers.

    Despite its lack of commercial activity, the FCA license remained a strategic asset, offering Ultima Markets a fast-track route into one of the world’s most respected financial jurisdictions.

    Founded in 2016 and headquartered in Mauritius, Ultima Markets has built a strong presence across Asia-Pacific, particularly in China, South Africa, and Southeast Asia.

    Known for offering over 250 CFD instruments across forex, indices, commodities, and shares, Ultima operates on platforms like MetaTrader 4 (MT4) and runs a dedicated Trading Academy aimed at improving financial literacy and trading skills.

    The company also made headlines as the first CFD broker to join the UN Global Compact, signaling its commitment to sustainable finance and ethical business practices.

    With the acquisition complete, Ultima Markets plans to launch a localized UK offering in 2026, tailored to meet FCA compliance standards.

    This includes enhanced client onboarding procedures, transparent pricing models, and a renewed focus on trader education.

    A company spokesperson stated, “We believe we can find our space in this mature market and deliver value to UK traders. Becoming FCA-regulated reflects our long-term commitment to transparency and integrity.”

    Ultima’s entry into the UK contrasts sharply with the recent exits of brokers such as Tiger Brokers, Aetos, and Trive, who have cited high operational costs and regulatory burdens as key reasons for leaving.

    However, Ultima joins a small but growing group of firms—including GTN and Moneta Markets—that are betting on the long-term potential of the UK’s retail trading sector.

    The acquisition also reflects a broader trend of offshore brokers seeking legitimacy and global reach through regulatory approvals.

    For UK traders, Ultima promises a fresh alternative to legacy platforms, offering competitive spreads, fast execution, and a strong emphasis on responsible trading.

    As the UK financial landscape continues to evolve, Ultima Markets’ strategic acquisition of Tiger Brokers UK may signal a renewed wave of international interest in FCA-regulated operations.

    With its global experience and commitment to compliance, Ultima is positioning itself as a serious contender in the UK’s crowded but lucrative retail trading market.

  • Plus500 Applies for Chilean License as It Expands Global Trading Footprint

    Plus500 Applies for Chilean License as It Expands Global Trading Footprint

    Plus500 Ltd (LSE:PLUS), the London-listed global multi-asset fintech group, has officially applied for a regulatory license to operate in Chile, one of the region’s most promising financial markets 

    The application is being processed through La Comisión para el Mercado Financiero (CMF), Chile’s financial markets regulator. Plus500 is working closely with Carey Abogados, a prominent local law firm, to navigate the regulatory landscape and secure the necessary approvals 

    Plus500’s interest in Chile is not sudden. The company registered a local entity in 2024, laying the groundwork for its market entry. Key executives, including CEO David Zruia, CFO Elad Even-Chen, and Ofir Chudin, CEO of Plus500’s Cyprus entity, are listed as directors of the Chilean subsidiary 

    This move aligns with Plus500’s broader strategy of global expansion through licensing and acquisitions. In its latest half-year results, the company reiterated its commitment to entering new markets, either by acquiring local firms or securing regulatory licenses 

    Why Chile?

    Chile has emerged as a hotspot for online trading platforms, thanks to its favorable regulatory environment. Unlike the UK and EU, Chile does not impose stringent leverage restrictions or aggressive risk warnings. For instance, rival broker XTB offers leverage up to 500:1 on certain products 

    Other major players like Pepperstone have also received CMF approval and begun operations in the country, indicating a growing appetite for CFD and forex trading among Chilean investors 

    Despite its presence in major markets such as the UK, US, Japan, Australia, Singapore, and India, Plus500 has yet to establish a foothold in Latin America. Chile represents a regulatory blank spot for the broker, and entering this market could unlock significant growth potential.

    While some brokers like XM and Exness have aggressively targeted Latin America, the profitability of these ventures remains unclear. However, XTB CEO Omar Arnaout previously stated that Chile could become one of the company’s top five branches globally, underscoring the region’s strategic importance 

    If approved, Plus500 will join a growing list of international brokers operating in Chile, offering retail investors access to a wide range of trading instruments. The move could also pave the way for further expansion into neighboring markets such as Brazil, Colombia, and Peru.

    This development follows Plus500’s recent licensing wins in Canada and the UAE, as well as its growing futures business in the US, which is expected to generate over $100 million in revenue in 2025 

    Plus500’s application for a Chilean license is more than just a regional play—it’s a calculated step in its mission to become a truly global fintech powerhouse.

    As Latin America continues to attract attention from major brokers, Plus500’s entry into Chile could mark the beginning of a new chapter in its international growth story.

  • Klarna Secures FCA Approval, Set to Launch Cashback and Balance Features in UK

    Klarna Secures FCA Approval, Set to Launch Cashback and Balance Features in UK

    Klarna, the global digital banking and payments innovator, has received official authorisation from the UK’s Financial Conduct Authority (FCA) to operate as an Electronic Money Institution (EMI). This milestone enables Klarna Financial Services UK (KFSUK), the company’s dedicated UK entity, to roll out two major features—Klarna Balance and Klarna Cashback—to its 11 million UK customers later this year.

    Already available in the US and 14 European markets, Klarna Balance will allow UK users to manage funds directly within their Klarna account. Customers can top up their balance via debit card, shop using Klarna, receive refunds, and earn cashback—all within a single, streamlined platform.

    The new Klarna Cashback feature offers up to 10% cashback on purchases made through the Klarna app. Unlike traditional rewards programs, this cashback is credited directly to the user’s Klarna Balance, ready to be spent anywhere Klarna is accepted—no points, no gimmicks.

    “This FCA authorisation marks Klarna’s evolution from a flexible payments provider to a full-fledged financial management platform,” said Abby Vickers, Head of Klarna Financial Services UK. “While legacy banks are still catching up, Klarna is empowering consumers with smarter tools to manage, spend, and earn—effortlessly.”

    The regulatory green light not only strengthens Klarna’s UK operations but also sets the stage for future product innovations. As Klarna continues to challenge traditional banking norms, it positions itself as a comprehensive solution for everyday spending and saving.

  • Exness Halts New Registrations in India Amid Regulatory Uncertainty

    Exness Halts New Registrations in India Amid Regulatory Uncertainty

    Global forex broker Exness has abruptly suspended new client registrations in India, sparking concern among traders and affiliate partners. The move, which took effect late last week, blocks access to account creation for users with Indian IP addresses. Visitors are now redirected to a simplified login page, with no option to sign up.

    The company has yet to issue a formal statement explaining the decision or clarifying whether the restriction is temporary. Affiliate partners were notified to cease all client acquisition efforts in India, further fueling speculation about the broker’s future in the region.

    Despite the registration freeze, existing Indian clients remain unaffected. Users with active accounts can continue trading without disruption, according to current access paths.

    India has long been a key growth market for offshore brokers like Exness, which operated locally through affiliates and introducing brokers. However, the country’s tightening regulatory landscape — including stricter oversight from the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) — may be prompting a strategic retreat.

    As of now, Exness has not indicated whether similar restrictions will be applied in other jurisdictions. The situation remains fluid, with industry observers awaiting further updates.

  • Markets.com Surrenders FCA License as CEO Steps Down Amid Strategic Shift

    Markets.com Surrenders FCA License as CEO Steps Down Amid Strategic Shift

    Online brokerage Markets.com has officially relinquished its license from the UK’s Financial Conduct Authority (FCA), marking a significant pivot in its regulatory and operational strategy. The move coincides with the departure of Chief Executive Officer Stavros Ch Anastasiou, who had led the firm since 2023.

    Anastasiou joined Markets.com from Safecap Investments Limited, where he served as Executive Director. His tenure at Markets.com was characterized by efforts to streamline operations and navigate evolving regulatory landscapes. The company has not yet announced a successor, and details surrounding its future leadership remain undisclosed.

    The decision to surrender the FCA license suggests a potential shift away from the UK market or a reconfiguration of the firm’s global compliance framework. Industry analysts speculate that Markets.com may be consolidating its regulatory footprint or redirecting resources toward jurisdictions with more flexible oversight.

    Finance Magnates, which first reported the development, noted that the company has yet to issue a formal statement regarding the rationale behind the license withdrawal or the CEO’s exit. The FCA has not commented on the matter.

    This development adds to a growing trend of brokers reassessing their regulatory affiliations amid tightening compliance requirements and shifting market dynamics. Observers will be watching closely to see how Markets.com repositions itself in the competitive online trading space.

    Markets.com is a global online brokerage offering CFD trading across forex, stocks, indices, commodities, and ETFs. Originally part of Playtech’s financial division, it now operates under the Finalto brand, which was acquired by Gopher Investments in 2022.

    The platform is known for its proprietary Marketsx interface, alongside support for MetaTrader 4 and 5, and integrates real-time sentiment tools, technical analysis, and fundamental data. It has held regulatory licenses in jurisdictions including Cyprus (CySEC), South Africa (FSCA), Australia (ASIC), and previously the UK (FCA), though it recently surrendered its FCA license amid strategic restructuring.

  • Monzo Fined £21 Million Over Financial Crime Control Failures

    Monzo Fined £21 Million Over Financial Crime Control Failures

    The UK’s Financial Conduct Authority (FCA) has issued a landmark £21.1 million fine against digital bank Monzo for critical lapses in its financial crime prevention systems during a period of rapid growth. The enforcement action highlights systemic failures across key operational areas between October 2018 and August 2020, as the bank surged from 600,000 to over 5.8 million customers.

    According to the FCA’s findings, Monzo allowed thousands of individuals to open accounts using blatantly implausible personal details — including fictitious addresses such as Buckingham Palace and 10 Downing Street. These oversights underscored serious weaknesses in the bank’s internal controls, which failed to scale alongside its meteoric rise in the UK’s fintech landscape.

    Despite being subject to a formal restriction from the FCA in August 2020, prohibiting the onboarding of high-risk customers, Monzo continued to allow more than 34,000 such accounts to be opened until June 2022. Regulators described this breach as a “fundamental failing” in Monzo’s anti-money laundering (AML) procedures and risk-based assessments.

    Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, remarked, “Banks must act as gatekeepers in the financial system. By failing to implement basic controls, Monzo jeopardized the integrity of the UK’s financial defences against crime. The acceptance of obviously false customer information reveals a shocking level of procedural neglect.”

    The FCA further noted that Monzo’s automated systems for monitoring suspicious activity were insufficiently staffed and misconfigured, resulting in customer alerts not being reviewed and multiple instances of high-risk behavior going undetected. Monzo also failed to provide adequate training to staff in AML protocols and neglected to verify customers against its own internal risk indicators.

    In response, Monzo has launched what it describes as a “comprehensive financial crime change programme,” aimed at reforming its internal practices. The bank claims it has significantly strengthened its fraud detection capabilities and client verification systems. TS Anil, Monzo’s Group CEO, acknowledged the FCA’s findings, stating: “These issues relate to a historical snapshot of our journey. We have taken substantial steps to improve and remain committed to staying ahead of emerging threats.”

    Originally pegged at £30.1 million, the fine was reduced after Monzo agreed to settle the matter early, avoiding a drawn-out legal battle. This case marks the tenth enforcement action by the FCA against UK banks for AML shortcomings since 2021 — a growing trend amid increased scrutiny of financial institutions in the digital age.

    As Monzo approaches the milestone of 13 million customers, the FCA’s ruling serves as a stern reminder to all fintech firms: innovation cannot come at the expense of vigilance, compliance, and ethical responsibility.

    Monzo has implemented a comprehensive financial crime change programme to overhaul its systems and address the deficiencies identified by the FCA.

    • Enhanced customer onboarding: Monzo redesigned its onboarding process to ensure more rigorous identity verification and plausibility checks (e.g. flagging landmark addresses like Buckingham Palace).
    • Improved risk assessment tools: The bank upgraded its internal risk matrix to better identify high-risk customers and apply appropriate due diligence.
    • Stronger transaction monitoring: Monzo reconfigured its automated alert systems and increased staffing to ensure suspicious activity is promptly reviewed and escalated.
    • Independent review: Monzo underwent a full external audit of its financial crime framework, as mandated by the FCA.
    • Lifted restrictions: After implementing the recommended changes, the FCA lifted its Voluntary Requirement (VREQ) in February 2025, allowing Monzo to resume onboarding high-risk customers under stricter controls.
    • Staff training: The bank introduced more robust AML training for employees, especially those handling alerts and investigations.
    • Policy updates: Monzo refined its procedures for identifying politically exposed persons (PEPs) and applied enhanced due diligence where necessary.
    • Data integrity checks: It now verifies customer addresses and other personal details more thoroughly, including cross-referencing postal codes and PO boxes.

    Monzo’s CEO, TS Anil, emphasized that these changes reflect lessons learned and a commitment to staying ahead of financial crime risks as the bank scales toward 13 million customers.

  • MyFundedFutures Strengthens Compliance Framework Following Global Suspension

    MyFundedFutures Strengthens Compliance Framework Following Global Suspension

    MyFundedFutures, a fintech firm specializing in futures evaluation and proprietary trading, has announced a major compliance overhaul after suspending operations in 21 countries due to regulatory concerns. The firm has now fully integrated ComplianceAlpha, a regulatory compliance platform developed by ACA Group, to enhance governance, transparency, and trader protection.

    Why the Compliance Upgrade?

    Last year, MyFundedFutures faced regulatory scrutiny that led to the suspension of its services in multiple jurisdictions. The firm’s decision to implement ComplianceAlpha is a direct response to these challenges, ensuring adherence to industry standards and reinforcing its commitment to responsible trading.

    Key Features of the New Compliance Framework

    The upgraded system introduces several critical measures:

    • Trader Safety & Oversight – Enhanced monitoring of trader communications and staff interactions to ensure a secure trading environment.
    • Market Abuse Surveillance – Advanced tools to detect manipulative or unauthorized trading behavior before it impacts the market.
    • E-Communications Monitoring – Real-time surveillance of Discord, email, and platform-based communications to bridge compliance gaps.
    • Centralized Policy Management – A structured governance system for internal policies, external disclosures, and trader resources.
    • Training & Certification – A comprehensive e-learning program covering AML/KYC, market abuse prevention, dispute resolution, and operational conduct.

    Impact on Traders & Industry Positioning

    With these measures, MyFundedFutures aims to set a new standard for compliance in the proprietary trading space. The firm’s sister company, Nortex Capital Partners, which manages live proprietary trading, will also adopt these policies to ensure consistency across operations.

    Philip Fried, Regulatory Compliance Manager at MyFundedFutures, emphasized the importance of governance, stating, “Traders suffer when firms treat compliance as an afterthought. We treat governance as a foundational pillar.”

    Future Plans & Market Expansion

    The firm has not yet confirmed whether it will resume operations in the previously restricted countries. However, with its strengthened compliance framework, MyFundedFutures is positioning itself as a more transparent and secure trading platform, potentially paving the way for future expansion.