Cedar Finance Have a Month To Prove Themselves to Cysec

cedar financeOver the last few months of 2013, binary options industry had been hitting the headlines in the financial press. Everything started off with the U.S Commodity Futures Trading Commission (CFTC) and SEC bringing charges against the leading binary broker ZoomOptions for “Violating the CFTC’s Off-Exchange Options Trading Ban and Operating as an Unregistered Futures Commission Merchant”. This is not the first time that the industry had come under microscope of the authorities. In fact during the early part of 2013, the Italian government ordered Italian ISPs to block access to the several binary options brokers’ websites for failing to be regulated under the MiFID rules.

Brokers Scramble to to Get Authorised by MiFiD

Since then, we have seen a scramble by binary brokers to get regulated under the MiFID rules by being licensed and authorized by the Cyprus Securities and Exchange Commission (CySEC). In October 2013, CySEC issued 12 new operating licenses for the following Cyprus Investment Firms (CIFs):

• A-Conversio Capital Ltd
• B.O. Tradefinancials Ltd (OptionFair)
• Cbay Financial Services Limited (24option)
• FT Traderworld Ltd (TraderWorld)
• Growell Capital Ltd
• OBR Investments Limited.
• Rodeler Limited (ZoneOptions)
• SN Financials Ltd
• T.B.S.F. Best Strategy Finance Limited (Cedar Finance)
• Trendoks Ltd Forex Services Provider
• Vinst Capital Limited
• YTF Trade Limited (Forex Services Provider)

These licenses issued were in addition to the 17 other licenses granted during the first half of 2013. One would have expected that after gaining their badge of legitimacy, these companies would attack the competitions with a new zest of life.

Just a Month after Cedar awarded Regulation they are Suspended

However, barely after a month after the holding company of Cedar Finance, T.B.S.F. Best Strategy Finance Limited, earned their operating license for CySEC, Cedar Finance’s license was suspended by the Cypriot regulator on 19th December for non- compliance.

Based on the announcement made by CySEC, the suspension was made “because there are suspicions for an alleged violation of the requirements for authorisation and in particular of sections 10(1) – Initial Capital, 11 –Memorandum of Association, 12 – Persons who effectively direct the business, 13 Shareholders, 28 – Ongoing obligations, 33 – Shareholders.”

According to CySEC, Cedar Finance has up to a month from the date of suspension to ensure compliance. Since two weeks have passed since the expiry of the 30 days deadline, there has been no further news as to the situation. The question now swirling in everybody’s mind now is whether Cedar Finance is taking any steps to ensure compliance or is it too much of a hassle to by regulated by CySEC?

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