Consistent with its regular practice of issuing warnings to the public against unregulated brokers, the Cyprus Securities and Exchange Commission has just published another such warning directed against binary options broker TradersKing.
Cyprus is a popular hub for binary options brokerages, especially since its local regulator, the CySEC, was the first pertinent authority to decide on the treatment of binary options as financial instruments and regulate such services.
According to the CySEC warning, the unregulated binary options brand which operates through the website www.tradersking.com, does not possess the relevant license permitting it to provide investment and related services in Cyprus in accordance with the local Investment Services and Activities and Regulated Markets Law.
Moreover, the Cypriot regulator clarifies that it has never authorized or regulated this firm, nor has it received any relevant notification from a competent authority of another EU Member State, allowing Tradersking to be operating under the MiFID “passporting” agreement.
Although the entity in question does not clearly claim on its site to be regulated in Cyprus or in any other jurisdiction, it does mention that it has “sister offices in Cyprus and Holland” and it is highly likely that it is this reference that has prompted CySEC to issue this warning.
Finally, CySEC once again avails itself of the opportunity to urge investors to consult its website in order to ascertain and check which entities are valid holders of CIF licenses, legally allowing them to offer their services in its jurisdiction.