The financial regulator in Germany, the Federal Financial Supervisory Authority (BaFin), ordered BP1 LP, Gum Ltd. and Pairs Ltd., the companies behind a number of forex and CFD brokerage websites, to immediately stop their operations in the Bundesrepublik.
According to the announcement, published on the website of the regulator, the three companies do not have a license to provide any sort of financial services or products and must stop their operations immediately. Under the German law all financial services providers in Germany must be regulated by BaFin or a similar financial regulator in another EU country.
BP1 LP owns and operates Star Options – a binary options broker, which also offers CFDs on stocks, indices currencies, commodities, and crypto coins. The broker says to be based in the UK and its domain address is www.sternoptions.com. Here we should note that since July 2nd the European Securities and Markets Authority (ESMA) totally banned all binary options bets on the territory of the European Union.
Gum Ltd., the second company in the focus of the German regulator, is registered on the Marshall Islands, but its broker – Stern Markets is operated by a support center in Sofia, Bulgaria. Stern Markets offers mainly CFDs on stocks, indices, currencies, commodities and crypto coins. The website address is www.sternmarkets.com.
The third company – Pairs Ltd., which owns and operated Weiss Finance, is both registered on the Marshall Islands and in Estonia. However, the broker again is run form Bulgaria, where its operational center is based. Weiss Finance also offers CFD trade with stocks, indices, currencies, commodities and crypto coins.