CySEC Suspends CIF License of Several FX and Binary Options Brands

The brokers now have ten days to take the necessary actions in order to comply with the specified provisions.

The Cyprus Financial regulator CySEC has just informed the public that it handed down a suspension on the Cyprus Investment Firm (CIF) licenses of several forex and binary options brokers, according to the decisions being made at the meeting dated March 13, 2017.

The Cyprus Securities and Exchange Commission (CySEC) has suspended the licenses of Gametech (Cyprus) Ltd, which operates the binaries/betting platform prooptions.com and the binary options broker Dragon Options Ltd.

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

CySEC imposed the punitive measures due to several alleged violations which may possibly endanger client/investor interests or more generally the regular operation of the capital market.

The aforementioned brokers now have ten days to take the necessary actions in order to comply with the specified provisions. During this time, they cannot provide any services or enter into a business relationship with any person and take on any new clients.

Suggested articles

Going Past the Great Wall: Things to Consider When Entering the Asian MarketGo to article >>

In addition, the brokers are not allowed to execute any orders from clients for buying financial instruments or provide any investment services in or outside of Cyprus.

Furthermore, the suspended firms are not permitted to advertise themselves as an investment services provider or have relating advertisements. They must also close all open positions in relation to clients’ contracts on their maturity date, or at an earlier date if the client so wishes, as well as return any funds and profits earned to existing clients.

CySEC also stipulates that any firm that has its licence suspended should mention on all its websites that its CIF licence has been suspended, which in this case, has yet to take effect.

 

Got a news tip? Let Us Know