EZTrader Suspension Lifted

eztraderAs the owner of several leading binary options trading platform brands such as EzTrader, globaloption and 888binary, WGM Services Ltd is regarded by many a key player in the binary options industry. The fact that WGM Services Ltd is a wholly owned subsidiary of Win Gaming Media, Inc, company listed on NASDAQ under the ticker label EZTD, only serves to add more prestige to the brands. Hence, when on the Cyprus Securities Exchange Commission (CYSEC) announced on 20th Nov 2014 the suspension of WGM Services Ltd’s CIF License (Number: 203/13) for the alleged violations of insufficient capitalization, deficiencies in the safeguard of their clients’ funds and large exposures, the entire binary options industry was stunned.

The Industry’s Reaction

The industry’s reaction was to be expected as the alleged violations were not something which a key binary industry player like WGM would risk their reputation for. One can only speculate that an oversight on the part of WGM’s management has led to the infringement of their regulatory requirements. The good news is that WGM had acted fast to correct this oversight and on 22nd Dec 2014, CYSEC announced that it was satisfied that WGM had complied with all the regulatory requirements and therefore decided to lift the suspension of the WGM’s license.

EZTrader Resumes Previous Activity

With the lifting of the suspension, WGM’s leading binary brand EzTrader is now able to resume the provision of its trading services across Europe again. It should be noted that while most binary brokers have chosen to operate without any form of licensing, WGM Services Ltd had opted for regulatory oversight under CYSEC as this helps to give their brands more legitimacy. Of course, the main disadvantage of being regulated as we have seen above is the fact that any slip up on the part of the broker can result in the suspension and at worst the removal of its license. And this does not take into account the associated bad press which comes along with such actions.

Nevertheless, we have to recognize the fact that CYSEC is serious in reigning in erring brokers who had inadvertently or deliberately flouted the regulatory requirements. For binary traders, this is good news as it is indicative of the rising credibility of CYSEC as the binary industry watchdog. Given the rising popularity of binary options trading during the last few years, this development is indeed a step forward for the binary options industry as whole.

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