SquaredFinancial Signals Exit From Cyprus Retail Business, Cites Restructuring

Broker SquaredFinancial said it has begun what it described as the formal start of a "strategic and voluntary withdrawal" from its Cyprus investment firm licence, indicating a wind-down of its local retail operations.

According to the company, the step is part of a broader internal restructuring effort aimed at streamlining regulatory obligations and enhancing operational efficiency. SquaredFinancial said it is no longer onboarding new clients under its Cyprus licence and has begun a structured unwinding of relationships with existing customers. The firm said all affected clients "will be contacted directly" with guidance on closing open positions and withdrawing remaining balances.

The licence remains active in the Cyprus Securities and Exchange Commission (CySEC) registry at the time of the announcement. SquaredFinancial received the licence in June 2017 and has previously settled regulatory matters in Cyprus, including paying a €35,000 fine for alleged compliance shortcomings in marketing and distributing CFDs to retail clients.

The broker said the transition forms part of a wider optimisation of its regulatory base across its international operations. Although stepping back from Cyprus retail activity, SquaredFinancial noted it will continue operating under its Seychelles licence.

The move reflects a broader pattern in Cyprus's FX and CFD sector. Several firms in recent years have reduced retail operations or shifted offshore licensing structures. BDSwiss, for example, eventually relinquished its Cyprus licence entirely. Other brands including Exness, FXTM, IronFX and RoboMarkets have scaled back retail onboarding under Cyprus permissions and now focus primarily on offshore structures, though not all have surrendered licences.

Separately, Doo Group is vacating its Limassol office, signaling further contraction in the local retail brokerage footprint.