Following series of fines and license suspensions, the Cyprus Securities and Exchange Commission (CySEC) has today cancelled its previous suspension of the operating license of the binary options broker OptionRally.
The Cypriot regulator said it’s now satisfied as the company has complied with regulatory obligations after adopting correctives measures and actions to tackle suspicions of violations of the Investment Services and Activities and Regulated Markets Law 2007. CySEC also highlights that the decision about withdrawal of the CIF license suspension was taken on October 2, 2017.
OptionRally is regulated by the CySEC and has therefore to comply with the Cyprus regulation in order to maintain its CIF trading license that enables the broker to offer its services across Europe, the watchdog stated.
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As reported by Finance Magnates in July, OptionRally was initially flagged for non-compliance and had its license temporarily suspended by CySEC following several allegations of multiple violations. The initial suspension was reported as the regulator believed the binary options broker was not operating in accordance with the Cyprus’ law of protection of client funds. Additionally, the sum of the broker’s capital requirements seemed to be bigger than the firms’ own funds.
CySEC considered these breaches could jeopardize the interests of broker’s clients and interface with the capital market operation. Hence, the watchdog suspended OptionRally’s license.
In addition, CySEC fined OptionRally with €138,000 in September 2016 for violating several regulation sections. The company has been showing weakness in recent months including laying off a number of employees at the end of last year.
OptionRally has been involved in one of the bigger sponsorship deals in the industry with the company’s logo appearing on the Ferrari’s Formula 1 race cars.