The Cyprus Securities & Exchange Commission (CySEC) has issued more warnings to investors in the country about the operations of two unregulated binary options brands. The warnings this time are against Fundsaver Services Ltd, and ‘Option500’.
In accordance with the local Investment Services and Activities and Regulated Markets Law, unlicensed firms are not permitted to provide investment and related services in Cyprus. CySEC says that neither of the operations mentioned above have ever been authorized or regulated by the watchdog.
Additionally, CySEC reports that no notification regarding the two firms have ever been received by the regulatory body from any competent authority of another European Union Member State, which is required by the European MiFID ‘passporting’ agreement. This means that the sites are not legally permitted to offer binary options trading to clients by any country in the EU.
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Option500’s website does not reveal the name of the company operating the brand, but the domain is registered by Option Solution Online Limited. The company claims to be located in London which would require it to get a UK gambling commission license in order to operate locally. However, the website does not display any regulations, gaming or financial.
The other warning is regarding Fundsaver Services Ltd, which operates the brand EveryOption. The company claims to be located in Cyprus which could have been the reason for the watchdog’s warning. Their website also does not display any relevant regulations. Despite the fact that the operation is conveniently in the same country as the regulator it did not give any details of further actions it might take against the firm.