Binary Option Broker Fined by CySEC

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Binary Option Broker Fined by CySEC

The Cyprus Securities and Exchange Commission has fined OptionBit parent Novox Capital Ltd. for illegitimately advertising its binary options services prior to its regulation.

ForexMinute.com – The Cyprus Securities and Exchange Commission have imposed a fine of €5,000 on OptionBit parent company Novox Capital Ltd. The tiniest fine is related to a matter which dates back to 2012, in which the CIF license holder Novox Capital Ltd., advertised its services within Cyprus, without being authorized as a binary options service provider.

The authoritative body has also posted few historical snapshots of the advertisements to make its point. They were taken back in 2012, and were presented as the key proof of Novox Capital Ltd. violating the CySEC’s codes by advertising its subsidiary OptionBit.com.

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The fine though seems like a fraction if one takes the maximum fine for this violation into consideration, which is €350,000. But the CySEC may simply needs to remind the brokers about their strict actions against any kind of encroachment.

The OptionBit.com though now holds the CIF license to offer its binary options services across several platforms, which got effective just a month ago.

Earlier, The Cyprus Security and Exchange Commission had closed down iOption amidst a dispute among its owners, because of which customers were incurring heavy losses. The organization has always taken a strict stand against the firms that rule out their model codes. There are although many binary options brokers that have resisted the idea of being regulated by CySEC, as the regulatory body is considered unhelpful and worthless by most of them. Traders are also less inclined towards knowing hwtehre their broker is regulated or not.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com