Prominent Cyprus-based offshore binary options trading firm Banc De Binary Ltd. is surrendering its registration, the Cyprus Securities and Exchange Commission (CySEC) announced on Thursday.
Specifically, Banc De Binary renounced its authorization under the country’s securities law and the firm’s authorization will lapse as of Jan. 15.
“Banc De Binary Ltd remains under the supervision of the CySEC until it settles its obligations arising from the investment services or/and activities,” the CySEC said.
Regulators in Canada have long warned investors about these offshore binary options trading firms, including Banc de Binary, in particular, as they’re not registered to operate in Canada.
The Canadian Securities Administrators (CSA) have repeatedly warned investors to “exercise caution when considering an investment in binary options,” which are risky bets typically promoted by unregistered, offshore firms.
In November 2016, Québec’s Autorité des marchés financiers (AMF) issued an alert about the dangers of dealing in binary options, noting that regulators continue to receive complaints about binary options trading firms.
“Binary options are a derivative instrument offered through an online platform or in person, and these offerings are a regulated activity,” the AMF said at the time.