eToro Clone among Eight Entities Flagged by CNMV

<p>The Spanish Comisión Nacional del Mercado de Valores (<a href="https://www.financemagnates.com/tag/cnmv/" target="_blank" rel="follow">CNMV</a>) has just added
eight new entities to its warning list. As the regulator reports, their
activity in the field of FX/CFD services and crypto services provided to retail
clients is not authorized, and, therefore, may be dangerous. </p><p>Moreover, the list includes an entity whose name is deceptively similar to
the popular social trading brand eToro.</p><p>CNMV Warns against ExpToro and
Eight Other Entities</p><p>On 13 November 2023, CNMV's warning list due to the lack of appropriate
licenses <a href="https://www.cnmv.es/webservices/verdocumento/ver?t=%7Bf247a565-3a31-48b7-b4b0-c4574ed99ddc%7D" target="_blank" rel="nofollow">included </a>Easy to Invest, El Comercio IX, Etora Grand, Pivotal Coin
Net, Thor FX, Tools4Deals, Xifra Global, and ExpToro.</p><p>The latter's name is strikingly similar to eToro, a popular company in the
retail trading sector. Thus, ExpToro could be classified among the clone firms
that use similar names and visual identification to trusted and popular
platforms to confuse investors and attract them to their services.</p><blockquote><p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/CNMV?src=hash&amp;ref_src=twsrc%5Etfw">#CNMV</a> releases new warnings, and one entity looks similar to <a href="https://twitter.com/eToro?ref_src=twsrc%5Etfw">@eToro</a>. Beware the potential <a href="https://twitter.com/hashtag/clone?src=hash&amp;ref_src=twsrc%5Etfw">#clone</a>! <a href="https://t.co/zfF8oNrP7i">pic.twitter.com/zfF8oNrP7i</a></p>— Damian Chmiel (@ChmielDk) <a href="https://twitter.com/ChmielDk/status/1724009620983681119?ref_src=twsrc%5Etfw">November 13, 2023</a></blockquote><p>"According to CNMV records, these institutions are not registered in
the corresponding registry of this Commission and, therefore, are not
authorized to provide investment services or other activities subject to the
CNMV's supervision," the Spanish regulator warned.</p><p>This is another clone that CNMV has warned about over the past month.
Previously, <a href="https://www.financemagnates.com/forex/bitpandas-evil-twin-how-clones-are-undermining-trust-in-crypto-exchanges/" target="_blank" rel="follow">the warning list included Bits Panda</a>, which was
impersonating the cryptocurrency platform Bitpanda. Also, last week, the
regulator <a href="https://www.financemagnates.com/forex/cnmv-flags-unregistered-investment-entities-warns-investors/" target="_blank" rel="follow">added four FX/CFD market entities</a> to its warning list.</p><p>CNMV Strengthens CFD Rules</p><p><a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance
Magnates</a> earlier
disclosed that the CNMV is on track to implement <a href="https://www.financemagnates.com/forex/spains-expanded-restrictions-on-cfds-set-for-july-20-gets-esma-backing/" target="_blank" rel="follow">stricter rules </a>for the
marketing, distribution, and sale of CFDs. These regulations, which came into force
on 20 July, received the label "justified and proportionate" from the
European Securities and Markets Authority (ESMA), which announced the update.</p><p>The initial
part of the newly imposed restrictions continues the trajectory set by the
CNMV's 2019 regulations and those established by ESMA in 2018. It explicitly
outlaws promotional activities and tactics targeting retail clients or the
wider public. This covers the utilization of sales representatives, call
centers, or software providers for investor recruitment. </p><p>XTB, the
online investment service, <a href="https://www.financemagnates.com/forex/xtb-takes-spains-tougher-cfd-marketing-rules-in-stride/" target="_blank" rel="follow">has acknowledged</a> that the broader limitations
enforced by Spain's securities watchdog have exerted a "minor"
influence on its business operations. The Polish broker, offering multiple
financial products, remarked that introducing these regulations has not induced
"any notable shifts" in the pace of acquiring new clients. However,
the company's stock did respond with a dip <a href="https://www.financemagnates.com/forex/xtbs-shares-reach-four-month-low-market-reaction-to-cnmv-rules/" target="_blank" rel="follow">of a four-month low</a>.</p>

This article was written by Damian Chmiel at www.financemagnates.com.