Profit Level and linked entities: ‘under examination for voluntary renunciation of the authorization’ by CySEC1. Summary of the activities of Profit Level and linked entities
Having analyzed the sometimes opaque activities of BCM Begin Capital Markets CY Ltd, the operator of the Profit Level, Begin Capital Markets and Capital Panda trading platforms, our network had highlighted the fact that a special effort seemed to have been made to confuse users of these platforms.
According to our investigation, the information provided was not clear and transparent to many users, leading us to believe that BCM was deliberately omitting the sharing of certain elements. What’s more, customer targeting appeared to be deliberately geared towards certain Balkan and Eastern European countries.
In this idea, Profit Level and Capital Panda’s presence on social media is predominantly in Czech – it’s worth noting that since last January, Profit Level’s Facebook and Instagram posts have no longer been in Czech, but in English. Why this sudden change?
We had also highlighted the sometimes nebulous use of numerous “tied agents”, third parties executing various orders and other tasks relating to the investment of financial capital in, and for, one of the platforms operated by BCM Begin Capital Markets.
This raised the question of whether the business model of the trading platforms operated by BCM was in line with European consumer protection directives, and whether it was economically sustainable. Profit Level and Capital Panda have many users across Europe, who could be at risk of falling victim to non-compliant practices.
2. Latest Begin Capital Markets announcement
On June 10, trading platforms Profit Level and Capital Panda issued an announcement concerning the cessation of their commercial activities:
To summarize the situation as outlined by BCM in this announcement, Begin Capital Markets is currently no longer within the parameters of market regulation, and can no longer afford to provide financial services under the economic conditions in which the company finds itself.
It should be noted that the press release announcing that Begin Capital Markets CY Ltd and the platforms it operates are no longer taking on new clients and will cease trading altogether, is only available after the user has voluntarily taken steps to become aware of it. Indeed, unless you click on the red banner at the top of the page, there is no mention of this press release or its contents anywhere else.
Nor has there been any official press release published on Profit Level or Capital Panda’s social networking platforms to announce this news, even though the two trading platforms’ marketing content and other market analyses continue to be published to this day.
Returning to the cessation of Begin Capital Markets CY Ltd’s activities, a visit to the website of regulator CySEC tells us that the company is voluntarily renouncing its license to practice on European territories, and that the regulator is currently examining this request:
Profit Level and Capital Panda customers and users will have access to all trading platform services until July 31, and will be able to close their positions and withdraw their investments until August 26, 2023.
Disclaimer:
The Financial Fraud Lawyers network aims to inform private investors (traders) of potential malpractices by Forex and CFD brokers. Our mission is to assist and protect traders when they encounter brokerage practices that go against their interests.
Our articles are intended to warn, share and inform the public about the legal risks of Forex and its players. Trading financial products and CFDs as well as investing on online platforms carry legal risks.
The article was written in good faith, based on public information and client testimonials valid at the time of publication. Our articles concern the protection of the interests of individuals on online investment platforms and are published in accordance with our right to inform the public about our activity. This article is not to be considered legal advice.
