The Cyprus Securities and Exchange Commission (CySEC) announced on Tuesday that it has withdrawn the Cyprus Investment Firm (CIF) license of Rodeler Ltd, the company that operated the forex and CFDs broker brand 24Option.
The decision by the Cypriot financial market regulator was made earlier in March following the company’s intentions to renounce its CIF license voluntarily. Rodeler gained the European regulatory license in 2013.
Apart from 24Option, Rodeler operated 24FX, Grandoption and Quickoption brands, according to the regulatory registration. As the name suggests, 24Option was launched as a binary options platform, but later it was transitioned as a forex and CFDs broker. The platform is still offering services globally and is operated by Richfield Capital Limited, a Belize incorporated entity.
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Too Many Compliance Violations
Before the renouncement of the license, Rodeler was already in a tussle with the Cypriot regulator. The company settled with CySEC last year paying a fine of €280,000 for multiple ‘possible’ compliance breaches. That was one of the many regulatory fines imposed on the platform by multiple watchdogs.
Many European regulators, including Italy’s Consob, banned the operations of 24option in their jurisdictions. However, the latest trouble of the broker brand operator began as the UK’s Financial Conduct Authority (FCA) flagged and banned the platform at the beginning of June 2020 for unauthorized celebrity endorsements on social media, along with several other serious violations. The company was passporting its CIF license to operate in the United Kingdom.
The implications of that compliance breach in the UK resulted in the partial suspension of the Rodeler’s license by CySEC.