A newly formed self-regulatory organization, EUBOA, has held the third meeting with the key issues discussed being the bonuses and the withdrawals. Are Binary Options Bonuses terminated?
14th November, AtoZForex – The European Brokers Association (EUBOA), a self-regulatory body in the binary options industry, held a third board meeting. The event took place last week in Israel, with the first two meetings being organized in Cyprus.
The EUBOA was formed in 2016 by the Binary Options firms. Among its founders are IQ Option, Banc de Binary, 24option and Anyoption, and technology platforms providers, TechFinancials, and SpotOption. The EUBOA founders decided to take a proactive position in collaborating with regulators aiming to help to establish proper rules for the industry and to enforce those rules. Instead of banning binary options trading, because of the misconduct of some unregulated binary options brands.
Are Binary Options Bonuses terminated?
The main issues covered during the third meeting were trading benefits to clients as well as withdrawal processes. According to the Chairman of EUBOA, Bjorn Anderson:
“I hope all EUBOA members will follow through and make clear commitments to move quickly to ensure a fairer and more structured binary options market. We are serious and want to ensure an industry that better protects clients and eradicates bad practice.”
Following the discussion, it has been decided that the major action steps to be taken are the termination of virtual bonuses when trading in binary options and introduction of the same-day withdrawal processes. Virtual bonuses cover both: bonuses that are applied as an enticement to attract new clients, and as a tool for the retention. Additionally, the use of real money bonuses will also be restricted and will not be presented to the client in a deceptive manner.
Which EUBOA members have agreed to implement the measures?
Up to now, four members of EUBOA represented on the director’s board, Anyoption, Banc de Binary, Spot Capital Markets, and Spotoption Exchange, have agreed to introduce those measures in a period of three months. Referring to other members, not all have agreed to the bonus restriction yet. But there was unanimity on the same-day withdrawal process which will come into effect as soon as possible. These decisions of the EUBOA are aligned with the recent advice of the European Securities Markets Authority (ESMA).
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