Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), has issued a warning on its website concerning two entities that are involved in providing binary options services. The announcement reveals that both websites have published false data about their alleged headquarters in the Grand Duchy of Luxembourg.
According to the announcement, both Royal de Bank and Futurmarket have not been granted authorisation permitting them to provide financial services in or from the country. Forex Magnates’ reporters have scouted the locations of the alleged offices in other countries on Google Maps, and unsurprisingly the addresses hardly seem to resemble office buildings.
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If a person looks at the website of Royal de Bank, the “About Us” section provides some questionable statements. Besides the fable about the “institution” being inspired by mid-century European banker families, the alleged CEO of the company, “Mark Bankhofer,” stated that Royal de Bank is handling “over 40 billion monthly transactions with consistently performing results and positions itself as a broker of quality.” The second website mentioned in the CSSF announcement, Futurmarket, caters wholly to French speaking clients and alleges to have offices in Bahrain, New York and Geneva.
Both websites demonstrate some of the unscrupulous ways the binary options industry goes about to bring in new clients. Posting false registrations of headquarters, lack of regulation and the alleged colourful stories behind many websites white labelling binary options technology, put additional strains on the industry, as more and more entities are being regulated as the industry matures. In due course this will bring more regulatory attention, just as yesterday, Canadian OSC, put binary options and Forex together with a marihuana investment .
This is not the first time the CSSF has encountered websites, falsely claiming to have anything to do with Luxembourg. Back in January, the financial regulator issued a statement warning the public about a firm claiming to have regulation in the country. Luxembourg’s authorities pride themselves on the status of the country as a banking safe heaven, and any company which declares itself as being registered or licensed by the CSSF is sure to be on the radar soon enough.