Moving the binary options industry more towards regulation proves a daunting endeavor, as many binary options brokers continue to solicit clients in jurisdictions where they are not allowed, or falsely claiming to be regulated to offer their services.
In response, the relevant market regulators across the globe try to keep up pace and protect unsuspecting traders through issuing warnings against such firms. Let us have a look at the most recent incidents from various jurisdictions:
In Canada, where OTC binary options trading is permitted provided that the company willing to target residents of a given province obtains the necessary authorization from the respective regulators, the British Columbia Securities Commission has added binary options broker OptiCrown on its Investment Caution List saying that the broker is not registered to trade in, or advise on, securities or exchange contracts in British Columbia and that it was reported as targeting clients in the jurisdiction. The same broker was warned against two months ago, by another Canadian regulator, namely the Ontario Securities Commission (OSC).
In New Zealand, the country’s Financial Markets Authority (FMA) has also updated its list of unauthorized firms soliciting New Zealand investors. Notably, this list now includes Options Rider, a company offering a variety of binary options services from www.optionsrider.com, which according to FMA, falsely claims on its website to be authorised and regulated by the New Zealand Securities and Exchange Commission. As the FMA points out there is no such authority named New Zealand Securities and Exchange Commission and therefore Options Rider is not regulated as a financial service provider in New Zealand.
Moving on to Spain, the country’s watchdog, the CNMV has issued two public warnings against two binary options brokers who target Spanish residents, when they are not authorized to do. The brokers in question are GTOPTIONS.com (http://www.gtoptions.com) and B4OPTION.com (https://www.b4option.com), both of which according to the CNMV are not authorized to provide investment services as per Article 63 of the Spanish Securities Market Act, which covers foreign currency instruments.
Finally, in Belgium, the Financial Services and Markets Authority (FSMA), which is usually very active in warning the public regarding unauthorized investment businesses has published on 25 September its updated list of investment companies that are not authorized to offer their services to Belgian residents but nevertheless do so.
The new additions to the Belgian regulator’s “Black List,” which include both binary options brokers as well as forex brokers, are as follows:
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.