As announced by The Times of Israel, the newly voted ban gives binary options fraud perpetrators three months to close down their businesses or face jail. The Jerusalem Post publicises: the Knesset votes to ban binary options industry. While the ban of binary options and its related activity by the State of Israel, sets the tone to take more stringent action against unfair and fraudulent endeavours, foreign trading platforms operating under a license granted by foreign regulators raise questions, as to why their jurisdictions should also fall into the ban — especially if they do not deal with Israeli investors. While Canadian security regulators have also recently reinforced their policy against binary options — by banning short-term binary options, the federal and state law in the United States still does not prohibit binary options — which to this day are still very popular. Post-Brexit United Kingdom, on the other hand, has a whole new take on the question. As recently announced by the Financial Conduct Authority (FCA) one their website, the regulation of binary options will be changing from 3 January 2018.
What does this mean?
Up until now, binary options in the United Kingdom have been regulated by the UK’s Gambling Commission, which means no financial regulations around the purchase of binary options. Well-informed consumers would have to look for the public register of licensees, to find out whether a company has a license or not. This is right away the open door to unsupervised financial transactions with no jurisdictional support or compensation schemes. Most investors don’t know their rights. They don’t even know that they can get their money back, if only they would file a lawsuit against the binary options company. What the FCA is hoping to achieve is to change that and prevent self-destructive tendencies and countless destroyed lives.
Towards a gradual reinforcement
It goes without saying that the British financial market took a blow with the United Kingdom’s decision to leave the European Union. We have witnessed the collapse of the Sterling and other currencies. CySEC — the binary options regulator in the European Union would no longer be able to monitor the market. Maybe we can see in FAC’s decision a response to the problem. The next question is what would happen if FCA was to completely ban binary options. As for now, CySEC, is still deciding whether or not to ban binary options.
As the debate goes on and many questions are still up in the air, it is imperative for investors to educate themselves and for victims to take legal action. Silence breeds shame and powerlessness — it is imperative to break it. Contact our dedicated team to talk about how we can serve you best and help you regain control by helping you get your money back.