The Cyprus Securities & Exchange Commission (CySEC) issued a warning today to investors in the country about the operations of an unregulated binary options brand. The company the watchdog warns against is Pilpel Capital Ltd, operating the brand Bloombex Options. An unlicensed firm is not permitted to provide investment and related services in Cyprus in accordance with the local Investment Services and Activities and Regulated Markets Law.
The Cypriot watchdog says that Pilpel Capital is not legally permitted to provide investment and related services in Cyprus as it has never been authorized nor regulated by CySEC, and also no notification has been received by the Commission from a competent authority of another EU Member State, pursuant to the above mentioned law and the MiFID “passporting” agreement.
On its website, Bloombex Options does not claim to be regulated in any jurisdiction offering binary options trading. However, according to material available on the site, it is open to clients from areas beyond Europe who require licensing, such as Turkey and Japan. The company’s main offices are also claimed to be located in London. This would require a UK Gambling Commission’s gaming license in order to operate locally in compliance with British law.
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CySEC has not offered an explanation as to why it released this message to the public today. Regulators in many parts of the world only issue warnings after local investors complain about getting cold calls from unregulated firms offering investments opportunities. Cyprus’ position as a major industry hub compels CySEC to issue warnings against firms operating in other markets at the request of fellow regulators.