The CySEC imposes a fine on the OptionsBravo and ChargeXP brokers

optionsbravo amende cysec

The CySEC (Cyprus Securities and Exchange Commission) regulator has just struck again and announced as of January 16th 2014 that it has decided to sanction several companies that exercise their activities within the binary options industry; this precisely relates to two very distinct companies. Although they do not seem excessive, these financial sanctions need to be imposed in any event because there were infractions recorded against the companies in question here.

The sanctions imposed by the CySEC

The first company that has received a financial penalty on behalf of the CySEC, the regulator of the European financial markets, is the binary options broker OptionsBravo behind which lies the company Calpiaco Ltd, with a fine in the amount of $5,000 that was imposed for violating Article 4 of the statute of the CySEC “Investment Services and Activities and Regulated Markets Law”. The infraction in question relates to the provision of services in the field of binary options on the European territory without having an authorization (license) from the local regulator, i.e. the CySEC.

The Cyprus regulator has just conducted a routine inquiry and found that the OptionsBravo broker proposed the trading of binary options to European traders since the month of September 2012 through its website. This explains the repressive action of the CySEC which remains minimal regarding this major infraction in spite of everything. It also appears that the $3,000 additional financial penalty would have been added to the original fine of $5,000, thus bringing the total amount to $8,000 because the company Calpiaco Ltd. has failed to submit to the CySEC the information that the regulator requested from the owner of the company. In fact, this second part of the fine relative to an administrative procedure is similar to what we have seen in the case where the ShortOption broker’s application for the CySEC license was rejected because of a lack of cooperation from the broker with regard to the identity of its majority shareholder.

Source: Official statement of the CySEC regarding the fine imposed on OptionsBravo.

The other company that was also subject to financial sanctions on behalf of the CySEC, the regulator of financial markets, is the  ChargeXP company. Unlike the previous brand,  this company does not represent a binary options broker; it is rather a provider of payment solutions for binary options brokers. For example, ChargeXP maintains partnerships with binary options platforms developed by the company SpotOption Ltd; among these brokers we can mention regulated brokers such as OneTwoTrade, OptionWeb and TopOption. This second company that operates through the ChargeXP brand is known through the name of Investment Limited; it has also violated a law in the same way as the previous company. This involves more specifically Article 41 of the SEC law drafted in 2009. In other words, following a request from the CySEC, the company would have provided the regulator with false information and made falsified statements regarding its activities dating from February to March 2013.

The fine imposed on ChargeXP by the authorities is equal to the amount of $10,000. Again, once the regulator demonstrates great compassion with this key actor of the binary options industry, whether rightly or wrongly, given that the maximum fine that may be imposed by the CySEC for this type of infraction is from $350,000, the sum of $10,000 imposed on the company represents only 2.85% of the most severe sanction that the CySEC could establish against the ChargeXP company.

Source: Official statement of the CySEC regarding the fine imposed on ChargeXP.

The CySEC, an uncompromising regulator

In recent times, the regulator of the financial markets based on the Mediterranean island of Cyprus “CySEC” has on multiple occasions shown a tendency to crack down on several binary options brokers. These sanctions brought against OptionsBravo and the ChargeXP brand come as a result of the warning against the LBinary broker that the regulator has sent to traders through an official statement published on its website as well as the latest news releases that affected the ZoomTrader broker that was sentenced to a fine in the amount of 15,000. In spite of the fines that have just been imposed on the two above-mentioned companies that we find relatively weak, the CySEC regulator has nonetheless set a good example; it has sent a clear message to companies involved in the trading industry that it continues to be attentive to their behavior and it will not hesitate to severely punish anyone who does not comply with the European financial regulation.

Which binary options broker to choose?

As you can see, it is a bad sign for a company to be sanctioned by the CySEC. Hence, it is better to focus on binary options brokers with a pristine image in the trading industry; these include regulated brokers with licenses and permits from the regulators of international financial markets, which represent a true sign of quality. Among the serious brokers that we are referring to we can for example note the regulated brokers TopOption and 24Option with which traders simply do not have anything to fear.

Please also take into consideration that the readers of this website can benefit from an exceptionally negotiated bonuses with these brokers; in fact, a 100% bonus will be granted to such trader when opening a TopOption account whereas under normal circumstances, the ZoomTrader broker does not offer any bonus to its new traders. A second important benefit is also available to our readers; it is the BonusBinaryOptions.net guarantee that allows you to be represented by our team in the event that a conflict is encountered with a broker, hence benefit from our privileged relationship to quickly resolve such conflict in your favor if the situation is deemed legitimate.

 

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