CapitalOption License Withdrawn
On 27th May the Cypriot financial regulator announced the withdrawal of the license of CapitalOption, a CySEC-regulated binary options broker.
CapitalOption license withdrawn as globally the regulators turn up the heat on the predominantly Tel Aviv-based operations that are bringing the binary options industry into such disrepute.
Trademarker (Cyprus) Ltd, (“the Company”) which owns CapitalOption along with SkyFX, has had its license (number 151/11) “wholly withdrawn” by the Cypriot regulator CySEC.
Mr Aviv Tal Mor
Mr Aviv Tal Mor, both the executive director and sole shareholder of Trademarker, was deemed to be “not of sufficient good repute”. This was capped with Mr Aviv Tal Mor “not suitable to ensure the sound and prudent management of the Company”. Given that hitherto one might reasonably have expected Dr Evil to walk out of CySEC brandishing a newly acquired CIF license this is clearly CySEC saying that enough is enough and they’re now going to take their regulatory duties seriously.
Mr Aviv Tal Mor is the owner of companies in Israel that a Court in Israel has appointed a liquidator due to “his possible involvement in illegal acts relating to the financial sector”.
As well as suspending the license of Trademarker CySEC has directed the company to:
- immediately and within the three (3) month period at the latest, should return to all of its clients any money owed, in accordance with the procedures adopted for this purpose,
- within the three (3) month period, should examine and solve all complaints before it.
CySEC then goes on to say that “it considers the money claimed by the complainants as clients’ money and consequently, the Company should ensure that this is kept in a separate bank account until all complains are investigate.” It should be in a separate bank account anyway!
“Furthermore, CySEC has called the Company to:
- Place on its website a public announcement for the suspension of its CIF licence, for the procedure to be followed as to clients’ money returns and as to the examination and settlement of the complaints.
- Proceed with changes in its website and/or in any other website so that, any references regarding authorization[sic] and supervision of the Company by CySEC, be removed.”
With regard to the first bullet point the ‘public announcement’ consists of a pop-up on the SkyFX website that lasts for less than fifteen seconds.