Is Binary Options scam? The answer to this question has been positive already from a number of countries, as Holland and Germany joined the list last week.
4 October, AtoZForex – The talks about Binary Options brokers have been in the markets for quite some time already, with the US and Israel putting an actual ban on this type of financial services. Binary options brands currently are experiencing the pressure from the European countries. However, the UK media now is arguing the different opinion.
Is Binary Options scam?
During last week, Germany and Netherlands have joined Belgium and France in their oppose stance against binary options, calling these firms a scam. As of now, binary options companies are banned in the US, Israel, China, Britain, Belgium, Netherlands, France, and Germany. The government of Holland has called the binary options providers industry “toxic” and prohibited it completely across the state.
As for the Britain, the FCA, the Gambling Commission and the City of London police had a meeting to develop a strategy for managing the binary options industry. The FCA also informed the public that it will never regulate binary options as financial products due to the amount of the fraudulent activity coming from this type of firms.
See also: Deutsche Bank impact on other European banks
The move to prohibit advertising for the get-rich-quick trading plans will increase the pressure on British officials. The Sunday Times published this weekend how a woman lost more than £640,000 in one of these schemes.
“The fastest-growing iteration of investment fraud”
The City of London police has also called binary options businesses “the fastest-growing iteration of investment fraud”. A big number of them are operating from Israel, where they are administered by the Cyprus regulators.
The Dutch Finance Minister, Jeroen Dijsselbloem, last week has introduced a ban on the advertising binary options across the region. The AMF financial regulator has stated, referring to the binary options:
“These products are just gambling, in our opinion.”
A number of large binary options firms’ owners have considered the option to establish a European Brokers Association (EUBOA) in an attempt to change the negative perception by countries, regulators, and media.
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