Leadtrade had has its CySEC authorization rescinded after failing to reconcile previous violations.
Leadtrade Ltd, the operator of multiple binary options brokerage brands, has relinquished its license authorization as a Cyprus Investment Firm (CIF), following a back and forth of suspensions and violations in requisite laws as a Cyprus Securities and Exchange Commission (CySEC) regulated entity.
CySEC originally slapped a suspension on Leadtrade over suspicions of a violation regarding lack of funds and inadequate Capital Adequacy Ratio back in late March. This was redacted and withdrawn just days later in April. The regulator asserted at the time that Leadtrade had complied with the provisions of the law, so its temporary suspension was lifted. We already wrote about it in our previous article.
However, according to a regulatory manifest, as of April 28, 2017 Leadtrade has had its authorization rescinded. This correlates to numerous site blackouts and other cessations of trading activity across its brands. Leadtrade had provided investment services across multiple domains including the following:
Finance Magnates has learned that the operations and trading services of several of these domains, including TopOption and Prestige Options, have been offline since May 1, 2017 – the Options Click site has been inactive for at least a few weeks. Regarding its latest action, CySEC officially cited a failure to comply with its provisions within the ten-day period allowed, which as mentioned above centered around Leadtrade’s Capital Adequacy Ratio.
Following the action, Leadtrade will be required to settle all of its existing obligations within a period of three months, as well as addressing any client complaints. The group itself will remain under CySEC supervision during this time.