Stardor Limited, the firm behind binary option broker Shortoption.com has been refused authorization by the Cypriot financial watchdog. In a statement announced by the Cyprus Securities and Exchange Commission (CySEC), the Cyprus-based financial services binary broker will have to terminate all operations with immediate effect. The notification comes after CySEC’s focus has been to clear out unregulated brokers from the island.
The regulator conducted a meeting on the 31st December, 2013 which concluded that Stardor Limited had not provided suitable information in relation to its CIF application.
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According to the regulators’ rulings CySEC has, as per the official statement: “Pursuant to sections 6(3) and 22 of the Investment Services and Activities and Regulated Markets Law of 2007 (‘the Law’), not to grant CIF authorisation to ‘Stardor Limited’ (‘the company’) due to the fact that from the information received, it was not possible to evaluate the suitability of the shareholder.”
Binary options are a regulated asset class, under CySEC it was one of the first financial regulators in Europe to authorize the product. According to the regulator’s website: “As of May 3rd, 2012, following a review at European level of how binary options are classified and regulated in other EU member-states, CySEC has decided to include binary options in the list of financial instruments that fall within the remit of the Investment Services and Activities and Regulated Markets Law of 2007-2009 (the ‘Law’).”