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LegacyFX – another CySEC CIF onboarding European clients via Vanuatu mutation

CySEC-regulated LegacyFX Group
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LegacyFX broker operates with two mutations. The “European Mutation” at www.legacyfx.eu is operated by A.N. Allnews Investments Ltd, an investment firm regulated by CySEC. Based on this CySEC-regulation, LegacyFX is allowed to offer its services in the UK and the EU. Then there is the “International Mutation,” operated by AN All News Investments Ltd regulated offshore by the Vanuatu Financial Services Commission (VFSC). It operated with the domain www.legacyfx.com. While not allowed to do so, the “International Mutation” actively addresses European investors and accepts happily accepts them and their money.

AN Allnew Investments CySEC regulation with LegacyFX

One would think that European clients of LegacyFX would only be allowed to onboard with A.N. Allnews Investments Ltd, regulated by the CySEC with the license number 344/17. In fact, this is not the case.

In our review, we noticed that with addresses, IP addresses, and phone numbers in Europe and UK, one could easily register and deposit with the offshore mutation of LegacyFX. Upon visiting the website www.legacyfx.com, only a notice appears (see above) that you visit the website on your own initiative. Conveniently, the box with which one agrees to the Terms & Conditions is already ticked, you are already opted-in. This is not compliant with European consumer protection laws.

LegacyFX Praxis Cashier payment options

This welcoming statement is not even correct. We have received many unrequested and thus unsolicited emails from LegacyFX over the months trying to acquire us as customers for www.legacyfx.com with giveaways, discounts, and bonuses. At this point, we should note that both the domains www.legacyfx.eu and www.legacyfx.com are approved by CySEC and thus fall under their supervisory responsibility.

By registering on www.legacyfx.com, you enter into an agreement with AN All New Investments (VA) Ltd, operated under VFSC license number 14579, the Terms and Conditions say.

As payment processors, we noticed Praxis Cashier and VLoad. Behind Praxis Cashier, credit and debit card payments are integrated, ecommpay online banking (Klarna, Ideal, GiroPay), Volt, Jeton Wallet, Perfect Money, Finrax (crypto), or BTCEX (crypto).

Conclusion

It is an open secret that many CySEC-regulated CIFs such as FXGlobe (read report here) or LegacyFX work with offshore mutations to circumvent the European regulatory frameworks. Sure, the CySEC is fully aware of this and has also sent out warning circulars to its CIFs to make them aware that this is “actually” not a compliant approach. In fact, however, this non-compliant behavior is tolerated. It is a question of money.

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