Banc De Binary Fined €125,000 by Cyprus Watchdog for Soliciting American Clients
- Banc De Binary did not ensure the correctness, completeness and accuracy of notification submitted to CySEC regarding its intention to provide investment services in other countries, therefore misleading the regulator.
Although it was just revealed, the decision was made in late October 2014. Among the four violations of the law CySEC lists, all counts relate to operating in the American binary options market without a proper license. As the Cyprus regulator is not known for handing out such high fines, it is likely to have been influenced by its US counterparts.
Banc De Binary was fined €25,000 for being managed by two executive directors who did not have "necessary good repute to ensure sound and prudent management," as between January 2013 to July 2013 the company had not informed CySEC, as required, about the services it offered in the USA.
Another €25,000 fine was handed out for not giving notice to CySEC about the intention to establish a branch in the United States and/or North America, and for not having authorization when it was introduced in the first half of 2013. Banc De Binary also got fined €25,000 for not informing the regulator of its intention to provide free investment services in the US and for providing such services in the US in the first half of 2013 without authorization.
The highest fine of €50,000 was for providing false assurances, asserting that it did not intend to provide investment services in the US, while it knew or should have known that it had already acquired US customers, providing investment services in some cases. In this way, Banc De Binary did not ensure the correctness, completeness and accuracy of notifications submitted to CySEC in July 2013, regarding its intention to provide investment services in other countries, therefore misleading the regulator.
The brokerage provided this official response to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Read this Term Magnates: “Banc De Binary LTD is the proud holder of a Cyprus Investment Firm License for over 2 years. We are a thriving and growing company, and have been widely acclaimed for providing cutting-edge, secure trading platforms and services to our many EU clients. Since being the first binary options specialists to be awarded with an EU license, we have gone from strength to strength and have always remained in full compliance with all Cyprus Securities and Exchange Commission (CySEC) regulations and legislation. With respect to CySEC’s announcement from 4 February 2015, the Company refutes the alleged claims and intend to take all necessary legal action in order to rectify CySEC’s decision.”
Although it was just revealed, the decision was made in late October 2014. Among the four violations of the law CySEC lists, all counts relate to operating in the American binary options market without a proper license. As the Cyprus regulator is not known for handing out such high fines, it is likely to have been influenced by its US counterparts.
Banc De Binary was fined €25,000 for being managed by two executive directors who did not have "necessary good repute to ensure sound and prudent management," as between January 2013 to July 2013 the company had not informed CySEC, as required, about the services it offered in the USA.
Another €25,000 fine was handed out for not giving notice to CySEC about the intention to establish a branch in the United States and/or North America, and for not having authorization when it was introduced in the first half of 2013. Banc De Binary also got fined €25,000 for not informing the regulator of its intention to provide free investment services in the US and for providing such services in the US in the first half of 2013 without authorization.
The highest fine of €50,000 was for providing false assurances, asserting that it did not intend to provide investment services in the US, while it knew or should have known that it had already acquired US customers, providing investment services in some cases. In this way, Banc De Binary did not ensure the correctness, completeness and accuracy of notifications submitted to CySEC in July 2013, regarding its intention to provide investment services in other countries, therefore misleading the regulator.
The brokerage provided this official response to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Read this Term Magnates: “Banc De Binary LTD is the proud holder of a Cyprus Investment Firm License for over 2 years. We are a thriving and growing company, and have been widely acclaimed for providing cutting-edge, secure trading platforms and services to our many EU clients. Since being the first binary options specialists to be awarded with an EU license, we have gone from strength to strength and have always remained in full compliance with all Cyprus Securities and Exchange Commission (CySEC) regulations and legislation. With respect to CySEC’s announcement from 4 February 2015, the Company refutes the alleged claims and intend to take all necessary legal action in order to rectify CySEC’s decision.”