Three Cyprus Brokers Settle with CySEC for €150,000 Over Regulatory Breaches

Cypruss financial regulator, the Cyprus Securities and Exchange Commission (CySEC), has reached settlement agreements totaling €150,000 with three Cyprus Investment Firms (CIFs) over suspected breaches of local investment laws.

The three companies—Broctagon Prime Ltd, Exclusive Change Capital Ltd, and Blossem Services Ltd—each faced separate investigations related to their internal controls and client service standards. All settlements were finalized and announced on July 3, 2025.

Broctagon Prime Pays €50,000 Over Client Disclosure Concerns

Broctagon Prime Ltd settled with CySEC for €50,000 following concerns related to the companys handling of client information. The investigation focused on events during Q3 2021 and examined potential breaches of Articles 25(1) and 25(3)(a) of the Investment Services and Activities and Regulated Markets Law of 2017. These provisions deal with the general principles that govern investment services and the quality of information provided to clients.

Broctagon Prime has held a CySEC license since 2017 and operates as a multi-asset liquidity and fintech provider, servicing both institutional and retail clients.

Exclusive Change Capital Agrees to €40,000 Settlement

Exclusive Change Capital Ltd, which recently rebranded to EXCA Prime, was fined €40,000 for failing to meet authorization and organizational standards as outlined in Article 22(1) of Cyprus‘s investment laws. The breach relates to the company’s compliance between January and August 2021, specifically around meeting internal requirements under Article 17(5)(b).

Despite the settlement, Exclusive Change Capital continues to operate under CySEC supervision and was previously recognized for its information security management practices, achieving ISO/IEC 27001:2013 certification.

Blossem Services Fined €60,000 Over Licensing Issues

The third and largest fine, €60,000, was imposed on Blossem Services Ltd. CySEC flagged potential non-compliance with Article 5(1) of the Investment Services and Activities and Regulated Markets Law, which deals with authorization requirements. The company agreed to settle without further legal proceedings.

Settlement Funds Go to the State Treasury

As CySEC clarified, all settlement payments go directly to the Treasury of the Republic of Cyprus and are not considered revenue for the Commission itself. The regulator has the authority to reach settlements when there are reasonable grounds to believe a company has violated regulatory obligations, even without a formal admission of wrongdoing.

These enforcement actions reflect CySECs ongoing scrutiny of financial firms licensed in Cyprus, particularly in ensuring firms adhere to proper authorization procedures and transparency requirements when dealing with clients.