The Cyprus Securities and Exchange Commission (CySEC) has announced that the company operating Dragon Options and Tao Trade, Dragon Options Ltd, has renounced its license. The decision of the firm comes a bit over three years after it announced its registration with the Cypriot regulator.
According to the official communique from CySEC, the firm is no longer authorized from the 6th of November 2017. The company has three months to settle its obligations to clients from this date.
The regulator outlines in its announcement that it is continuing to supervise the entity until the obligations of the brokerages are settled.
Three Years of Regulated Operations
Dragon Options acquired its CySEC license at the beginning of 2014. Only a couple of years later the regulatory crackdown on binary options caused the company to rethink its operations.
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In the meantime, the firm encountered legal trouble with CySEC in March this year. The company’s license was suspended by the regulator, which gave the firm 10 days to fix some regulatory issues.
Since CySEC has not updated its announcement since March, it can be safely assumed that Dragon Options has reached some sort of an agreement to return client funds. However as is the case with many binary options brokers, the process can take much longer than clients are willing to tolerate.
Clients of regulated binary options brokers are advised to seek legal council from the respective regulators of the companies where they are holding their money when seeking refunds. Customers that have deposited with unregulated brokers are likely to face more problems when presented with withdrawal difficulties.
Clients of Dragon Options that are awaiting withdrawals are advised to contact CySEC in order to submit their official complaints.