CySEC issues warning against LBinary.com

0
191 views
CySEC issues warning against LBinary.com
CySEC issues warning against LBinary.com

Continuing its crackdown on unregulated brokers, the Cyprus Securities and Exchange Commission (CySEC) issued on 10th January 2014 a warning against yet another binary options broker, namely LBinary.com. More specifically, CySEC informs 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. This is because CySEC has never authorized the operation of the said company, nor is it a bank or cooperative firm established in Cyprus and thus authorized to provide such services. Moreover CySEC points out that Live Binary Ltd is not regulated by the Commission and the Commission has not received any notification by any of its counterparts in other European countries to the effect of this firm being a regulated provider.

The CySEC announcement concludes with the generic warning of urging investors to consult its website prior to conducting business with any investment institution, in order to ascertain if the entity is authorized to provide such services within the jurisdiction of CySEC.

At the moment it is not entirely clear what prompted CySEC to issue this warning against the particular broker. A wild guess would be that the broker has perhaps hinted or insinuated in some way that it is in fact regulated by CySEC and the Commission wanted to put things straight. In any case, we haven’t found any evidence of LBinary claiming to be regulated by CySEC or any other regulator for that matter. At least they do not claim so in their website content, although this does not rule out the possibility that they have somehow attempted to give the impression they were licensed. The fact is that LBinary.com is one of the numerous binary options brokers out there who are not, currently at least, regulated by any authority anywhere.

As regulation in the binary options industry is a relatively newer trend, there is nothing remarkable about yet another unregulated broker operating. However, as the industry moves closer to better and more effective regulation, it is definitely safer and wiser for traders to choose their brokers carefully and it makes sense if they reward those brokers who are regulated by preferring them for conducting their trading.

Returning to LBinary we could argue that this brand would benefit from a greater degree of clarity as regards who they are and who is behind them. It doesn’t take a lot of research to see that things are convoluted on this aspect to say the least. Just visiting LBinary.com you find to two conflicting claims, the first that LBinary is a brand of Live Binary Ltd based in the Seychelles, and the second that LBinary is owned by Targaryen Holdings Limited which is based in Gibraltar.

With matters surrounding this particular broker still being unclear and since at least one regulating authority deemed necessary to issue a warning against them, it would perhaps be prudent to avoid dealing with them, or at least doing so with caution and a complete comprehension of the associated risks.

NO COMMENTS

LEAVE A REPLY