The Cyprus Securities and Exchange Commission (CySEC)has suspended the Cyprus Investment Firm (CIF) license of Conotoxia Ltd, citingconcerns about the company’s compliance with legal and regulatory requirements.The suspension follows suspicions that Conotoxiafailed to meet key governance, shareholder suitability, and organizationalstandards under the Cyprus investment law.CySEC’s decision, announced today (Tuesday), stops Conotoxiafrom conducting investment services, entering new business transactions, oradvertising as a licensed provider.Reasons Behind the SuspensionCySEC identified several violations involving failureto comply with the conditions required for CIF authorisation, notably regardingthe composition and control of Conotoxia’s board of directors, the suitabilityof shareholders, and organizational safeguards for client protection.Related: Cinkciarz.pl Chief Accountant Arrested in Alleged $25M Fintech Fraud CaseAt the time of this publication, Financemagnates.com has confirmed that thewebsites of both Cinkciarz.pl, a Polish online currency exchange brand owned byConotoxia Holding Group, and Conotoxia Ltd., its Cyprus-based subsidiary, areoffline.During the suspension, Conotoxia cannot offer or carryout any investment services or accept new clients. The firm is also barred frompromoting itself as an investment services provider.This move aligns with CySEC’s broader enforcementstrategy to ensure that Cyprus-based financial firms comply strictly withgovernance and operational rules.Regulatory ContextConotoxia now faces a one-month deadline to implementnecessary changes to address the regulatory breaches. Failure to resolve issues could result in the permanent withdrawal of the authorisation.CySEC’s action sends a clear message to investmentfirms operating in Cyprus: robust compliance with legal and organizationalstandards is mandatory. Firms that neglect these requirements risk suspension,which disrupts business continuity and erodes client trust.Investors and market participants should monitorregulatory announcements closely and exercise caution when dealing with CIFsunder CySEC scrutiny. The intense regulatory environment within Cyprusunderscores the importance of transparency and governance in maintaining marketconfidence.Read more: Cinkciarz.pl Loses Dispute with KNF, Accuses Court of Protecting “Civil Service Caste” in PolandLast month, Polish authorities arrested Cinkciarz.pl'schief accountant concerning an alleged fraud scheme that prosecutorsclaim cost customers over 112 million zloty ($25 million). This development followed the Warsaw AdministrativeCourt's recent dismissal of an appeal by Conotoxia sp. z o.o., a Cinkciarz.plsubsidiary, against the Polish Financial Supervision Authority's (KNF) decisionto revoke its payment services license.In February, Cinkciarz.pl announced the closure of its Polish branch. This announcement coincided with the temporary suspension of operations by the company following an investigation by Polish prosecutors over complaints from approximately 1,200 fintech clients.This article was written by Jared Kirui at www.financemagnates.com.