Tag: scams

CySEC removes Cedar Finance’s license for good

Por el 22-01-2015 Categoria: Scams

Binary Option Scams –  Cedar Finance

The financial security commission of Cyprus has finally take care of the case of Cedar Finance, one of the binary options brokers that has been offering traders the ability to speculate in financial markets through binary options. The press release was published in Greek in the official website of the financial regulator the Mediterranean island of Cyprus.

Cedar FinanceThere has been already a first statement against Cedar Finance, this took place on December 19, 2013, and there was a second iteration just a few weeks later, on February 21, 2014. This announcement follows a meeting of the CySEC that took place on June 16 of 2014 where the final withdrawal of the CIF 213/13 license took place, this was when the broker was still allowed legally to offer investment services to traders within Europe. Therefore, the T.B.S.F. Best Strategy Finance Ltd society, which owns the brand Cedar Finance and www.cedarfinance.com website, is no longer a broker officially regulated and authorized in the European Union by the CySEC.

The withdrawal of the license to the broker has been applied because of the numerous offenses committed by this broker, whose practices are contrary to the rules of the CySEC “Investment Services and Activities and Regulated Markets Law”. An example of this can be seen in the last infringement of Cedar Finance confirmed by the authorities; which was an offense against section 26 (5) of the regulations of the CySEC, then it was proposed that services to European traders were to be suspended temporarily on December 19, 2013. However and despite the warning of local financial authorities, the broker continued its activities.

Before the latest statement, Cedar Finance had  a three month period to regularize their status with the correspondent authorities in their investment activities through binary options. It seems that the broker has ignored the demands of the financial authorities and continued to offer their services without the CySEC license or any other license from another financial regulator. Therefore, Cedar Finance did not respect the law and posed a significant risk to traders and investors. For these reasons, both the CySEC and financial advisors discourage traders who use the services offered by Cedar Finance and any other broker that is not directed by a regulated and authorized entity.

Unlike Cedar Finance, which no longer has the CySEC license, or any right to offer legal binary options trading in Europe, there are numerous binary options brokers that are regulated and have licenses, permits and other authorizations from different financial institutions that reward their quality of investment services. These regulated binary options brokers do not present any risk to traders. Customers tend to have the protection of banks and financial authorities, so that if any inconsistency occurs, any money invested has certain security and might be recovered with help of the regulative entities.

Among these regulated brokers which offer binary options, it is recommended to choose brokers that belong to the large companies and are known as regulated industry trading brokers. There are twelve European regulators licenses, including licensing from the CySEC (Cyprus / EU), CNMV (Comisión Nacional del Mercado de Valores – Spain), AMF (Autorité des Marchés Financiers – Banco de France), CONSOB (Commissione Nazionale per le Società e la Borsa – Italy) or FCA (Financial Conduct Authority – UK).

Banc de Binary sued for operating illegally

Por el 22-01-2015 Categoria: Scams

Binary Option Scams – Operating illegally by Banc de Binary

The binary options platform Banc de Binary has received a demand from the US securities regulators accusing them of providing services to American residents without compulsory licensing.

Banc de Binary was the only binary options broker left to ensure that it had every regulation and license required to operate inside the United States.

BancDeBinaryOfficial information regarding marketing, and operation procedures reveal that they were settled on Wall Street, New York, in the Trump Tower. Both the Commodities Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) filed civil lawsuits in the Nevada federal court which accuses Banc de Binary of a violation of the ban in the US about binary options trading, and for operating without registration from mid-2011 to March 2013.

In this period, Banc de Binary operated an online trading site that allowed US customers to operate binary options, which is prohibited by the CFTC. According to this entity financial regulation, Banc de Binary used this site to request the opening and closing operations on assets like oil, silver, sugar, coffee, corn, currencies and other commodities illegally.

Oren Laurent, President of Banc de Binary, issued an official statement confirming the cease of operations of the binary options platform in the US market, following the measures taken by the United States Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), both industry regulators controlled by the State. In its official statement, Laurent said that these entities “have claimed that Banc De Binary is not allowed to offer their binary products to US residents without being registered with the corresponding agencies”. It was confirmed that Banc De Binary discontinued all operations with US residents, so it will not accept more clients in the country and it won’t allow existing customers from the USA to perform operations on the platform.

Laurent stated that at this point, they intend to work on the refunds regarding accounts of existing customers. For customers who have met the requirements and have agreed to accept bonds, the platform will refund the total remaining balance on their accounts. Otherwise, Banc De Binary will subtract from the trader’s balance the amount of the bonds accepted, and there will be a refund corresponding to any remaining positive amount. The broker will process the refund via the same payment method used to make deposits. Depending on the payment method, the transfer should not take more than a few days.

Federal agencies are on the watch for financial penalties and any sort of lock that manages to prohibit Banc de Binary to establish any negotiation with US customers. A few days ago another binary options platform based in Cyprus, 24option has closed its doors to customers in the United States.

Many sources indicate that after the recent lawsuit against Banc De Binary, and charges brought against them by the CFTC, 24option has been fearing similar actions; so they have decided to close their doors and cease to accept any more American customers

Customers are wondering what this decision means for 24option and what impact will it have on their accounts and balances. As it has been stated, all previously created accounts that still have funds on the platform can continue to use the system and withdraw their money.