As binaryoptionswire.com has already reported in the past, Cyprus as a jurisdiction and their local regulator the Cyprus Securities and Exchange Commission (CySEC) have repeatedly come under fire over the last couple of years, for being too accommodating to the binary options trading industry that it is supposed to regulate and for "offering a flag of opportunity" to brokers with CIF status.
As a result, CySEC has come under pressure from its fellow European regulators to increase the level of scrutiny of firms under its domain for some time now and the Cyprus Securities and Exchange Commission has been responsive to those calls by tightening the leash and increasing the frequency by which it issues announcements, warnings and fines in this regard, in an attempt to enhance protection for traders and crack down on crooks.
Following those stricter regulatory standards and continuing its crackdown on unregulated brokers CySEC issued on 13th August 2014 two separate warnings to traders about the operations of unregulated binary options brands.
Following up on its previous announcement of 19 June, 2014, the Cyprus Securities & Exchange Commission issued a warning to the trading public in the country against the activities of the company T.B.S.F., which stands for Best Strategy Finance Ltd and is the parent company of the binary options broker "Regal Options". According to the announcement T.B.S.F. Best Strategy Finance Ltd is not permitted to provide investment and related services in Cyprus in accordance with the Investment Services and Activities and Regulated Markets Law, as the firm's authorization from the Commission has been revoked.
The second warning from CySEC wanted to inform investors about the company Chelestra Ltd, operating under the brand of LBinary. According to the Cyprus Securities and Exchange Commission announcement Chelestra is not legally permitted to provide investment and related services in Cyprus as it has never been authorized nor regulated by CySEC, and also no notification has been received by the Commision from a competent authority of another EU Member State, pursuant to the above mentioned Law and the MiFID "passporting" agreement. The Cyprus Securities and Exchange Commission (CySEC) had already issued on 10th January 2014 a warning about binary options broker Lbinary informing investors that under the provisions of the Investment Services and Activities and Regulated Markets Law of the Republic of Cyprus, Live Binary Ltd is not permitted to provide investment and ancillary services in the Republic.
CySEC once again urges potential investors in both these warnings, to consult the list of authorized entities which are allowed to provide investment services in its jurisdiction prior to conducting any sort of business with any investment institution.
Subsequent to our coverage of the CySEC warning, the BinaryOptionsWire research team will attempt to contact both brokers in the next couple of days for an official response or clarification regarding that matter. We promise to keep an eye on the story and keep you up to date with any developments. As always feel free to share your thoughts or experiences with us on this or any other matter.
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.