As per WikiBit’s latest regulatory database, the CySEC license number (No. 343/17) of centfx at Cyprus was as of September 30, 2023. In the EU region, its client funding coverage ratio as of June 2024 has fallen drastically from 98% to 23%. The site currently retains only the Mauritius FSC license (C118023690), though the leverage authority limit of this license is 1:30 and does not cover 64 jurisdictions like the European Union and the United Kingdom. In November 2023, the Spanish CNMV cautioned that centfx had illegally provided 1:500 leverage to domestic clients, with illegal transaction volume of 42 million euros, registering an 89% block rate of its platform access IP in the Iberian region.
WikiBit’s compliance scoring system (100 points) assigned centfx 47 points, which is 72 points lower than the industry average. Major deductions include: the period between segregation of client funds audits over the minimum regulatory period of the 13-month cycle (actually up to 19 months), and the complaint resolution time average up to 8.3 days (industry standard ≤3 days). In March 2024, German BaFin figures showed that complaints against centfx increased 34% year over year, with 67% being instances of delayed withdrawals. The average processing time took 4.2 days in 2022 to 11.7 days. Money owned by an Italian investor of $124,000, which was traded through centfx, was locked for 87 days due to an account verification flaw, and only 68% of the original amount was eventually retrieved.
Within the Asia-Pacific region, the Australian ASIC license (AR License Number 001294561) supposedly possessed by centfx only allows it to act as a broker-agent and not outrightly to hold client funds. WikiBit’s verification found that during Q4 2023, the capital adequacy ratio of the Sydney office was a meager 18.7%, which is far from ASIC’s 50% lower threshold. In January 2024, Singapore MAS added centfx to the unauthorized list, and the success rate of domestic users downloading the client through the App Store then dropped from 92% to 17%. Data from the Securities Commission of Malaysia show that there were 2.3 million US dollars worth of centfx-related disputes in 2023, however, the rate of successful mediations through the FOS Financial Complaints Service remained below 9%.
Technically, the centfx MT5 server (IP address range 103.15.26.0/24) failed PCI DSS 4.0 certification, and the likelihood of user payment card data leakage became 2.3 times higher than the industry average. In August 2023, the Kaspersky cybersecurity firm detected a high-risk vulnerability (CVE-2023-45789) in its Android client, which can lead to bypassing 2FA verification. centfx waited 11 days to post the patch, when the volume of account theft cases increased by 340% in the meantime. The SSL encryption strength test on WikiBit shows that centfx’s official site’s TLS 1.2 configuration score only gets a grade B (all industry-leading sites are A+), and the key exchange algorithm still uses the insecure RSA-2048 instead of ECC.
Regulatory background reports suggest that centfx received a temporary license in 2021 from Canada’s IIROC but had its approval revoked in June 2022 since it failed to reduce the complaint rate to below 3% within a period of 12 months (actually 5.7%). A survey report released in April 2024 by South Africa’s FSCA reported that the ZAR account held locally by centfx had been convicted of spread manipulation. In the liquidity low phase (21:00-24:00 GMT), the EUR/USD quote spread rose to 4.2 times the market average, and this raised clients’ average annual transaction cost by $2,400.
Now, centfx has three red alerts in WikiBit’s live early warning system: The credit rating of the customer’s fund custodian bank is lower than BBB- (changed from Deutsche Bank to Seychelle ABC Banking Corp in May 2024), the negative balance protection policy only covers 85% of the account balance, and the insurance compensation limit is reduced from 1 million euros to 50,000 euros. Although the platform informs that it is pursuing a UK FCA license, the registration progress check also shows that its review of its EMI license has been outstanding for 227 days, significantly higher than the FCA’s typical 189-day approval period.