Reason for this visit

Cyprus imprudently purchased Greek government bonds in 2012. When the Greek government bond management defaulted, the Cyprus banking system suffered heavy losses exceeding 30% of the annual GDP of Cyprus, and the countrys domestic debt crisis occurred. In response to the crisis, the Cyprus government introduced a terrible solution that was opposed by all the people, which aggravated the crisis. At the same time, some people in Cyprus discovered that having an upward trend in price, various foreign currencies that were independent of the sovereign currency might be able to cope with this crisis. As a result, people poured funds into the small foreign exchange market in an attempt to hedge and protect themselves. For various reasons, Cyprus has gradually become a country with active foreign exchange transactions. In order to help investors better understand the current situation of foreign exchange brokers in Cyprus, WikiFX survey team decides to go to the country for on-site visits to local companies.

On-site visit

In this issue, the survey team went to Cyprus to visit forex broker DRAGON CAPITAL as planned according to its regulatory address that 1 Poseidonos Street, Ledra Business Centre, Engomi, CY 2406, Nicosia, Cyprus.

On March 7, 2024, the investigators came to 1 Poseidonos Street in Nicosia, the capital of Cyprus for a visit to the brokers office, and located Ledra Business Centre, a 2-storey structure easily accessible with a well-maintained façade beside the street in close proximity to Russian and the US embassy.

Upon arrival at the office building for further investigation, the name of “LEDNA BUSINESS CENTRE” could be seen outside, and people werent allowed to enter without an access card. In the meantime, the door was locked.

Through the glass door, it could be discovered that there was a directory and mailboxes on the ground floor, both of which didn‘t display the name of DRAGON CAPITAL. And the official website of DRAGON CAPITAL didn’t mention other registered name.

Through the on-site investigation, it is confirmed that the broker doesnt have a physical presence at the place.

Conclusion

The survey team went to Cyprus to visit forex broker DRAGON CAPITAL as scheduled, but didnt find the company at its regulatory address. This denotes that the broker may just register with the address without a physical business office at the location. Accordingly, investors are advised to choose the broker cautiously.

Disclaimer

The content is used for informational purpose only, and shall not be taken as a final order for making a choice.