Caveat Emptor! CySec warns potential investors about unregulated binary options brand

The last two years have been a period during which a vast array of binary options brands have come into effect, most of which operate under the auspices of Cypriot regulator CySec after becoming recognized as a financial asset class by that particular regulator during the latter part of 2011.

Whilst CySec’s ruling has opened the door to a proliferation of brands, most of which operate as sales and retention desks for OTC binary options products provided via one of the four major platform providers, the regulator has a duty to report publicly should an unregulated brand solicit for business.

Last week, CySec released a notice that potential investors should exercise care with regard to a binary options brand which operates under the designation of Call And Put and uses the TradeSmarter platform, via its website, on the basis that this particular entity is not permitted to provide investment and ancillary services in the Republic of Cyprus, and that it has never been authorized by CySec.

The warning continues to detail that is not a bank or cooperative firm, and is not established in the Republic of Cyprus nor authorized to provide such services.

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