The Belize financial watchdog, the International Financial Services Commission of Belize (IFSC), today published its second warning this week against a binary options firm for not holding a licence.
According to the watchdog, BinaryOptionInvestors, an online brokerage operating online via www.binaryoptionsinvestors.com, and specialising in trading currency pairs and commodities, has been falsely claiming to be located at Leninsky Prospekt, 34 Moscow Russia and holding a licence issued by the IFSC for Brokerage, Consultancy and Advisory Services in Foreign Exchange.
The IFSC has confirmed that “BinaryOptionInvestors is not licensed by the IFSC or any other competent authority in Belize to engage in any type of trading business.
Furthermore, Licence No. IFSC/60/138/BCA/10 carrying the broker’s name and purporting to be signed by Mr. Gian C Gandhi, the former Director General of the IFSC of Belize, is a complete forgery.
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A glance at the website confirms the watchdog’s concerns as there is no sign of the company being regulated by any jurisdiction whatsoever, regardless of what the company may claim. The lack of transparency is further evident on inspection of their contact details which are lacking to say the least, suggesting the company may be a scam.
The watchdog has therefore warned investors and other persons concerned to exercise caution as BinaryOptionsInvestors is prohibited from carrying out any type of trading activity, and that doing so would place any potential investors’ funds at risk.
The update was released by IFSC Director General Neri J. Matus, who earlier this week removed the licence of the binary options broker Banc De Binary for a series of non-compliance issues.
Belize is known as an offshore destination for brokers who want to meet fewer and softer criteria and to comply with less strict rules and requirements than are required in other jurisdictions.
Nevertheless, there are set rules and regulations that must be adhered to in order to operate in this capacity under its jurisdiction which BinaryOptionInvestors failed to meet, culminating in today’s warning.