Cyprus financial regulator CySEC has withdrawn the suspension of binary options broker EZTrader (via its parent company WGM Services Ltd), and restored its CIF license.
EZTrader also owns and operates the GlobalOption.com and EZInvest.com brands, and the 888binary.com which targets the Chinese market. The company is run by founder and CEO Shimon Citron. Its board of directors includes private equity fund pros Ron Lubash, CEO of Markstone Capital Group, and Gustavo Perrotta, Managing Partner of Hamilton Ventures LLP.
EZTrader reported revenues of $7.95 million for the first six months of 2014, but was losing money. The company raised $3.94 million from investors in May 2014, bringing its cash level to $6.95 million as at June 30, 2014. The Company recently entered into sponsorships of leading soccer clubs in Germany and The Netherlands, Bayer 04 Leverkusen and Feyenoord Rotterdam.
EZTrader is one of just a handful of regulated binary options brokers. Most binary brokers operate without licensing. The downside of operating as a licensed broker, of course, is that an administrative slip-up (such as this one) can result in the removal of your license, and the bad press that comes along with it.
EZTrader saw its CIF license temporarily suspended late last month, with CySEC citing suspicions of alleged violations regarding:
- Safeguarding of clients’ funds,
- Own Funds, regarding the capital adequacy of investment firms. and
- Large exposures.
Apparently CySEC is now satisfied that all is in order, stating that “it has been satisfied that the Company complied with the provisions of the Law.”
To see the CySEC reinstatement notice click here.