OptionRally’s Cyprus license gets suspended

OptionRally’s Cyprus license gets suspended

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The Cyprus Securities and Exchange Commission (CySEC) announced it has suspended the license of the binary options broker OptionRally and gives it one week, starting from July 13, to remedy the situation.

The reasons for the suspension are possible non-compliance with authorization and operation conditions and violations of the laws on client fund and own fund protection. Additionally, OptionRally has allegedly violated the EU directive on capital adequacy ratio.

During the suspension period, the broker cannot sign up new clients and accept and transmit client orders, nor to provide/perform investment services in Cyprus, other EU or third countries.

In essence OptionRally was one of the many binary options brokers, until Israel prohibited the sale of binary options in the country. Since then the company reportedly has been trying to change its business model.

Last summer media reported that it has terminated its 24/7 telephone support and has switched to automated services. Then word got out that the broker has shut down its Israeli customer service unit and has moved shop entirely to Cyprus.

OptionRally has also been in trouble with the regulators. It was fined by CySEC for violations of the conditions of its license, while Japan’s FSA, and the Ontario Securities Commission warned the broker is not authorized to operate in the respective jurisdictions.

Earlier this year OptionRally lost its Belize license.

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1 Comment

  1. OptionRally also lost the Belize license, so do you think that it is the end of this binary options broker?

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