Buzztrade License Suspended
The owners of the binary options brokers Buzztrade and BinaryRoyal have had their CySEC license suspended as of the 17th June 2016
Buzztrade license suspended as of the 17th June over “…suspicions of an alleged violation….due to the Company’s non compliance at all times with the authorization[sic] and operating conditions…of the law…” CySec Decision
CySEC lists the affected websites of AirFinance as ytftradeltd.com, investing-area.com, cfdroyal.com, buzztrade.com and binaryroyal.com, the last two being binary options sites. Binaryroyal.com links to buzztrade.com.
AirFinance Pro has until the 17th July to get their act together and inform CySEC of its actions taken to comply with the CySEC rule book. If they do not comply then CySEC will automatically begin the process of revoking the Company’s CySEC authorisation.
CySEC Constraints on Buzztrade
Until then Buzztrade:
- Cannot enter into a business relationship with any person and cannot take any new clients.
- Cannot receive, transmit or execute any orders from clients for buying any financial instruments.
- Cannot provide/perform any investment services in Cyprus or outside Cyprus (in member states and third countries).
- Cannot advertise itself as investment services provider and make advertising campaigns and announcements.
- Must upload on all of its websites that its CIF license has been suspended.
Furthermore, if the clients wish, AirFinance Pro must:
(i) Close all open positions in relation to clients’ contracts on their maturity date or on an earlier date if a client so wishes.
(ii) Return to existing clients all of their funds and profits earned.
While “In the context of safeguarding the management of clients’ assets CySEC has called the Company to consider changing (or increasing) the bank signatories to the clients’ bank accounts.”
This last sentence concerning bank signatories is a most unusual statement, CySEC clearly does not trust the incumbent bank signatories!
Football Sponsorship Deals
Like other binary options brokers, Buzztrade has sponsored a professional football club, in their case FC Porto. In the last ten years Porto have won the Portuguese championship six times while never ending outside the top three. This venerable club were formed in 1893 and is where Jose Mourinho made his mark and name. It will be very interesting to see what they make of this development……… One can surmise that Buzztrade may get the same treatment as EZTrader did from Feyenoord.
As well as Porto, investing-area.com has sponsored St.Etienne, the French football club.
It is now two days after the CySEC Decision was made public and, although a weekend has intervened, nothing has as yet been added to the website to satisfy CySEC demand number 5 above, i.e. nothing about the CIF license being suspended.