CySEC Warns about Binary Options Firm as Not Authorized in Cyprus

The Cyprus Securities Exchange Commission has warned of an unauthorized firm within the Republic that lists its transactions between its

CySEC(Updated with CallandPut comments below)

The Cyprus Securities & Exchange Commission (CySEC) issued today its latest warning informing the public of an unauthorized entity operating the website as not permitted to provide investment and ancillary services in the Republic.

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The notice was issued on the basis of Cyprus rules, pursuant to the Investment Services and Activities and Regulated Markets Law, as according to CySEC, has never been authorized by the Commission, and that it is not a bank or a cooperative firm established in the Republic and authorized to provide such services. No notification has been received by a competent authority of another Member State, pursuant to sections 77 and 80 of the above mentioned law, and how the firm is not regulated by the Commission.

callandputAs the company website name implies, lists options in the binary format – which have become a popular way to trade for a significant amount of online speculators, such as traders who engage in Foreign Exchange and other forms of online investing, including in CFDs, metals, and other instruments offered from within a margin account.

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A growing number of regulatory warnings have been issued by a half a dozen or more regulators for binary options firms not authorized in those respective jurisdictions, such as the latest just two days ago from Belgium.

Forex Magnates’ research revealed that in the terms and conditions of the above mentioned website, the company described how Cypriot law applies to govern its terms with customers. In addition, trades were described as taking place within the Republic, for example, section 1.3 of its listed terms state: “1.3. All transactions between you and the Company take place in Cyprus where the Company’s principal servers are located.”

The references to Cyprus and/or premises could have been the reason CySEC provided the alert, in addition to other reasons that could have caused the notice, as the company on this basis would be required to be registered with CySEC, Forex Magnates opines. The company’s head office is said to be at 17 Xenopoulou Street, P.O. Box 54425, Limassol 3106, Cyprus, as explained to Forex Magnates by people close to the company.

According to representatives at speaking to Forex Magnates.  The firm is cooperating with CySec and has removed reference to being located in Cyprus.

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