The Cyprus Securities and Exchange Commission (CySec), the financial regulator in the Island nation has announced today that binary options broker, TDOptions.com registered as TDO Consulting Ltd was fined €50,000. Consequently the binary options broker made a settlement of the amount in question.
In a statement on the regulators website, CySec states that the broker was in breach of article 4(1) of the Investment Services and Activities and Regulated Markets Law of 2007, by the Company because it appeared to have been offering investment services (in binary options) until December 2012.
Cyprus was the first EU regulator that endorsed the short-term trading product, on 5th May 2012 CySec made the announcement that it would officially recognise binary options as a financial instrument.
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Cyprus has been a magnet for firms taking advantage of low taxes and sound infrastructure to offer binary options. Since the new regulations CySec has been filtering out the regulated firms from the un-regulated. Firms will be registered as CIF and will be under the scope of Law 144(I)2007.
In the official order CySec stated: “The settlement reached concerns alleged violation of article 4(1) of the Investment Services and Activities and Regulated Markets Law of 2007, as amended (the “Law”) by the Company because it appeared to have been offering investment services (in binary options) on a professional basis until 3.12.2012, without an IF licence according to the Law. The Company has paid the amount of €50.000.
Banc De Binary, a CySec regulated broker was recently sanctioned by US regulatory authorities for offering a regulated product without the correct authorisation.
Update: The fine is in Euros, it was previously stated in $ in the headline and first paragraph.