Cyprus Watchdog Suspends EZTrader Financial License over Three Alleged Violations of the Law

The decision was reached taking into serious consideration that the alleged violations may possibly endanger the interests of the clients

CySECThe Cyprus Securities and Exchange Commission (CySEC) has just announced that the authorisation of the Cyprus Investment Firm, ‘WGM Services Ltd’, number 203/13, has been suspended pursuant to the country’s Investment Services and Activities and Regulated Markets Law.

The Cypriot regulator’s only explanation was that the actions were due to suspicions of alleged violations of the following three sections of the law:

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

1. Operational requirements – Clients’ funds, Safeguarding of clients’ funds.
2. Own Funds- on the capital adequacy of investment firms.
3. CIFs large exposures-  on large exposures.

Suggested articles

Going Past the Great Wall: Things to Consider When Entering the Asian MarketGo to article >>

No specifics of the alleged violations were given other than the sections they apply to. However, CySEC said that the decision for suspension was reached after taking into serious consideration the above mentioned alleged violations which may possibly endanger the interests of the clients of WGM Services Ltd and the operation of the capital market.

EZTrader logoThe binary options broker, EZTrader, which was launched in 2008, is the main brand of WGM Services Ltd. EZTrader, Inc. also owns and operates GlobalOption.com, EZInvest.com, as well as 888binary.com, a brand developed specifically for the Chinese market.

The commission gave EZTrader (WGM Services Ltd) fifteen days to take actions in order to comply with the law.

It is also noted that while the suspension of the authorisation is in force, WGM Services Ltd:

  • Cannot provide/perform any investment services/activities, pursuant to the Law.
  • Must close all open positions in relation to clients’ contracts, if a client so wishes, and return to them all their funds and profits earned – a practice which is not considered to be a violation of the provisions of the Law.
Got a news tip? Let Us Know