The Cyprus Securities and Exchange Commission (CySEC) has officially withdrawn the Cyprus Investment Firm (CIF) authorization of VPR Safe Financial Group Ltd, the operator behind the Alvexo trading brand. The regulator’s decision, announced today, follows the company’s own request to renounce its license under Cypriot investment law.
What Happened: VPR Safe Financial Group Renounces CIF License
According to CySEC, the withdrawal was made pursuant to section 8(1)(a) of the Investment Services and Activities and Regulated Markets Law of 2017 and section 4(7) of Directive DI87-05. The regulator clarified that the decision was not a disciplinary sanction but rather the result of the company’s expressed choice to cease operations as a regulated Cyprus Investment Firm.
VPR Safe Financial Group had operated Alvexo, a brokerage offering Contracts for Difference (CFDs) and other trading products to retail and professional clients under CySEC oversight. The firm’s decision to voluntarily surrender its license means that it is no longer authorized to provide investment or ancillary services within or from Cyprus.
CySEC noted that, as part of the withdrawal process, the firm must settle all outstanding obligations toward clients and third parties and ensure the proper handling of client funds in accordance with regulatory requirements.
Investor Takeaway
Background: Previous Settlement and Regulatory Context
The development follows CySEC’s €50,000 settlement with VPR Safe Financial Group in November 2024. That settlement concerned possible breaches of the Investment Services and Activities and Regulated Markets Law of 2017 and EU Regulation No. 600/2014 (MiFIR), relating to conduct of business and reporting obligations.
While the details of the settlement were not publicly specified, such cases typically involve deficiencies in compliance monitoring, client communications, or transparency procedures. The regulator’s resolution at the time allowed the firm to continue operations under CySEC supervision, but the latest move suggests the group has now opted to discontinue regulated activities from Cyprus entirely.
The withdrawal aligns with CySEC’s ongoing efforts to streamline its supervisory framework and ensure that authorized investment firms operating from the island maintain full compliance with EU financial standards. Over the past year, several CIFs have either voluntarily surrendered their licenses or faced regulatory action amid tightening oversight and costlier compliance burdens.
Alvexo’s Status and Next Steps
Alvexo, the trading name operated by VPR Safe Financial Group, had offered CFD and Forex trading services across multiple jurisdictions. Following the withdrawal, the brand’s operations in Cyprus must cease unless conducted under another duly authorized entity. CySEC’s announcement did not specify whether Alvexo will continue activities under a different regulatory umbrella.
Clients are expected to receive formal notifications regarding fund withdrawals, account closures, or transfers, in line with investor protection rules. Industry analysts note that such voluntary exits often precede structural reorganizations or relocations to other regulatory jurisdictions with differing frameworks or operational costs.
CySEC continues to emphasize that all investment firms exiting the regime must honor their obligations to clients and counterparties, ensuring a transparent and orderly wind-down process.
Investor Takeaway
Why It Matters: Consolidation and Compliance in Cyprus
The voluntary surrender of VPR Safe Financial Group’s license reflects a broader trend among Cyprus-based brokers adjusting to evolving EU regulatory expectations. With enhanced requirements for capital adequacy, conduct monitoring, and transaction reporting, smaller or regionally focused firms have increasingly chosen to consolidate or restructure their regulatory footprints.
For CySEC, such developments reinforce its reputation as a proactive regulator ensuring that entities under its supervision adhere to MiFID II standards and EU-wide investor protections. For clients and industry stakeholders, the regulator’s transparency provides clarity on the status of active and withdrawn entities — a crucial aspect of maintaining market confidence.