The Spanish financial market regulator refreshed its cautionary list on Monday by including ten new entities. Of note is Linq Capital, which has garnered attention due to multiple recent warnings.
Linq Capital Has Been Added to CNMV’s Warning List
On May 27, the Spanish National Securities Market Commission (CNMV) updated its warning list with ten new entities. One of these additions is Linq Capital, known for offering FX/CFD trading with an unusually high leverage of 1000:1.
The company asserts its UK registration, with representatives using cold calling to imply compliance with European supervisory commissions. However, the claimed headquarters in Richardschester is fictitious, as confirmed by BaFin including the company on its warning list in February.
BaFin cautioned that Linq Capital lacks the required regulations. It appears the company is unregulated in Germany, Spain, and possibly in other jurisdictions.
CNMV comment on Linq Capital
CNMV stated that based on their records, these institutions are not registered with the commission and therefore lack authorization to offer investment services or other activities under CNMV supervision. The company’s false main headquarters address hints that its business model might be fraudulent.
Coverage of the Latest Regulatory Actions
A week ago, the German market watchdog issued a warning about Pepperstone.vip, a clone of the retail broker Pepperstone GmbH. The CNMV previously identified a similar clone of the Pepperstone FX/CFD brokerage in 2023. BaFin fined Neobank N26 €9.2 million for failing to report suspicious activities in 2022.
The Finance Line recently covered the latest actions by CNMV a few months back. The Spanish regulator issued an alert about 18 unregistered investment firms, which included a variety of FX/CFD and crypto service providers.