The CySEC license of the Cedar Finance broker is temporarily suspended

cedar finance

The Cedar Finance binary options broker (behind which hides the company T.B.S.F. Best Strategy Finance Limited) has just left for some time the exclusive circle of regulated binary options brokers. For a little more than a month, the broker has received the license of the financial markets regulator in Cyprus, i.e. the CySEC (which oversees brokers and other financial institutions at the European level) and has just had its license suspended by the CySEC itself. Note that the current suspension is not final; it is not a permanent withdrawal of the license that has been previously granted to the broker. The suspension only lasts 30 days until the date of January 19 2014. The broker will need to comply with the rules of the regulator with regard to financial services under penalty of completely losing its license at the end of the months of suspension being imposed by the CySEC.

What violations is Cedar Finance charged with?

In the official statement that we can find on the website of the CySEC, the regulator indicates that the withdrawal of the license # 213/13 is linked to the violations of several laws and regulations concerning the settlement of the CySEC. It may seem strange that a company like T.B.S.F. that has recently received an authorization from the CySEC is penalized this early and various violations have already been identified.

The Cypriot regulator explains the withdrawal of this license claiming to have suspected alleged violations in relation to the laws relating to investment services and activities on regulated markets. The CySEC is here referring to a violation of the conditions concerning the initial capital (capital available to the company to ensure its solvency to traders ) and also refers to violations within the management and shareholders of the broker.

The financial authorities of Cyprus have also stated that the violations in question here “may jeopardize the interests of the clients of the company”. These less reassuring few words of the CySEC may be negatively perceived by traders; hence we could conclude that speculating on financial markets via binary options by going through the services of the Cedar Finance broker would not be a good thing for a trader and could seriously undermine its portfolio. According to comments published by the CySEC, it is preferable to avoid this broker and opt for regulated binary options brokers with whom a trader has nothing to fear.

The CySEC, an authoritarian regulator

This decision by the CySEC comes as a hard blow for the Cedar Finance broker; the broker appeared to have successfully navigated with respect to the influx of binary options brokers that are emerging on the market by obtaining the license in November. The broker disappoints many traders by being sanctioned in this manner which degrades its image. Recently, the regulator of financial markets, CySEC, has published a number of interesting warnings against the less serious binary options brokers of the industry.  The regulator has warned traders by issuing a warning against the TraderXP broker and more recently against the NRGBinary broker.

The CySEC seems determined to maintain a healthy image of the binary options industry and does not hesitate to crack down when a broker tends to take a little too much freedom or cross the limits of the financial regulations set by the European jurisdiction. Having fought so hard to recognize binary options as a real investment product and not a mere money game, the regulator is intransigent and monitors brokers with a heavy hand in order to ensure maximum protection of traders’ interests and their funds.

Regulated binary options brokers

The wording of encourages its readers to move towards regulated binary options brokers proven over the long term and bearing the trust of regulators who granted them their licenses. Among the best and most serious brokers in the market, we can list brokers such as AnyOption, OptionWeb or TopOption; these three brokers are the kind of brokers that a trader needs to focus on when they consider embarking on binary options trading since these brokers have many licenses from international regulators including the license of the French financial markets authority, the AMF.

Choosing a binary options broker through this website will also provide you a number of important advantages such as the guarantee that protects you in case of litigation against a broker. It also offers an exceptionally negotiated 100% bonus on deposit when opening an account with OptionWeb instead of the 20% bonus that the broker normally grants to its new traders.

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