The CSA forms Binary Options Task Force together with the 13 provincial regulators in order to fight off binary options scam. What measure has the new Canadian task force already taken against binary options?
3 March, AtoZForex – More regulators and institutions are taking a stance against binary options. After the recent EUROPOL binary options summit, now the Canadian regulators are stepping up. The Chair of CSA enforcement committee, Frédéric Pérodeau shared that there were over 800 complaints in 2016 across Canada.
The most intriguing case was that of the Canadian trader, Fred Turbide. He committed suicide after binary options broker 23Traders lost his funds and savings. Following these developments, now the Canadian Securities Administrators (CSA) and the Canada’s 13 key financial regulators have decided to take measures against binary options. An investigator from the Manitoba Securities Commission (MSC), Jason Roy said:
“Binary options fraud is a leading type of investment fraud facing Canadians today. We want Canadians to know that there are no registered individuals or firms permitted to trade these products in Canada.”
CSA forms Binary Options Task Force
CSA, which is comprised of thirteen provincial regulators, launched a new website; www.BinaryOptionsFraud.ca. Also, the CSA forms binary options task force to take on binary options marketing, false claims of regulation, cloning and other illicit operations. Furthermore, the goal of these recent actions of the CSA and its counterparts is to educate Canadian investors about the frauds circulating within the binary options market.
The frauds are often using aggressive marketing tactics and false claims. Moreover, the CSA reported that the investors are attracted by luring advertisements on various social-medias such as Facebook, Twitter, etc. Looking at these developments, the new task force has already contacted the mobile companies and online advertisers to get rid of binary option mobile apps and advertising in Canada.
Comments from CSA Enforcement Committee Chair
The senior director of investigations at Quebec AMF and chair of the Canadian CSA enforcement committee, Frédéric Pérodeau, shared his remarks on the case:
“The crackdown will include trying to persuade social media websites and online advertising vehicles. In order to decline ads and other promotions for binary options trading. A task force set up by CSA is also targeting mobile device companies. Because investors are downloading apps to participate in binary options trading. We want them to understand there is an issue and we want them to be part of the solution.”
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