Binary options technology and brokerage company TechFinancials Inc (LON:TECH) has announced that it has notified Cyprus financial CySEC of its intention to withdraw the Cyprus Investment Firm (CIF) license of its regulated subsidiary B.O. TradeFinancials Limited (BOT), and that it plans to shut down its OptionFair binary options brand, returning all client funds.
BOT is the regulated entity under which TechFinancials has been operating its (until now) regulated binary options brokerage brand OptionFair. It also operates binary options market making operation MarketFinancials Limited.
TechFinancials had attempted to sell OptionFair as part of BOT and MarketFinancials late last year to a group of private investors. However, that $400,000 deal fell apart in early February, when the deadline for CySEC to approve the new owners came and went.
As we have reported several times recently, the overall restructuring at TechFinancials is part of the company’s decision to focus its attention on supporting the most profitable parts of the business, and on developing new products and technologies – in particular, blockchain-based products, led by the company’s Blockchain based online diamond exchange Cedex.com. The company’s wider strategy is to cease any binary options B2C operation in the EU, and to focus only on B2C trading in Asia Pacific region via its joint venture DragonFinancials.
Back to the CIF license withdrawal… TechFinancials stated that it is in the process of notifying BOT customers of its intention to terminate all of its activities related to operating its OptionFair brand, and plans to return all client funds.
As a result of the notification of the return of the license, MarketFinancials has terminated its market maker services with BOT, which was its only source of income. TechFinancials plans to sell MarketFinancials , along with its license, and the Company intends to provide a further update on this process in due course.
OptionFair now has the following message posted on its website:
Dear Valued Client,
Please note that the domains/trading platforms operated by B.O. Tradefinancials Limited (hereinafter the “Company” or “B.O”) with license number 216/13 (www.optionfair.com, eu.33option.com and www.tradefinancials.com) will cease their operations subject to the Company’s decision to proceed with the withdrawal of its Cypriot Investment Firm Authorisation.
The aforesaid termination does not affect in any way your right to terminate your agreement either now or at a later stage by requesting the closure of your trading account and withdrawal of your available balance. Kindly note that trades/withdrawal requests and closure of trading accounts shall be made the latest by 27.2.18 00:00.
Due to the immediate actions that need to be undertaken, the Company will ensure that closing of accounts, as well as withdrawal requests will be dealt with immediately.
It shall be clarified that the Company is fully aware of the legal requirements and obligations in relation to the renouncement of its license and will proceed with all the necessary actions that are required to be taken.
Please contact us directly at the following details in case you need any further clarifications.
Email: [email protected]
Phone: +357 25 040 120