It appears the grace period for Cyprus based binary brokers to apply for a CySEC CIF license has lapsed.
Cyprus financial regulator CySEC has sent out a release warning investors against binary options broker NRGbinary (www.nrgbinary.com), and its parent company NRG Capital (CY) Ltd. CySEC states that NRGbinary is not and has never been licensed by CySEC.
Based on information on its website, NRGbinary is based in Nicosia, Cyprus.
The lesson here? It appears as if CySEC is, one by one, going to go after the unregulated binary options brokers which are operating out of Cyprus, or claim to be doing so. A recent warning was issued by CySEC against binary options broker TraderXP.
CySEC warns investors against binary options broker TraderXP
It is interesting comparing the warnings and fines issued by regulators such as the CFTC in the US, and CySEC in Cyprus. The CFTC is always very precise and detailed when it issues a warning, specifying what exactly happened (or is alleged to have happened). CySEC's pronouncements, however, often leave a lot to be desired and leave the reader wondering what they really mean.
The latest example is CySEC's new warning issued yesterday against binary options brokerTraderXP. CySEC's brief warning basically states that TraderXP is not licensed by CySEC, and is not authorised to act as a bank.
Again, it is unclear why CySEC issued the warning. Unless changes have just been made at the last minute, TraderXP's website does not include any reference to Cyprus or CySEC. The company's 'Contact Us' page refers to a Bulgarian phone number under 'Global Headquarters'. And the fine print on the website points out that clearing services are done in Romania.
Perhaps TraderXP is incorporated in Cyprus. Perhaps they have established offices in Cyprus, or have been engaged in other activity there.