ISA overseas Binary Options marketing ban is one step closer. What does the new Memorandum of law say? Is the end in sight for Israeli Binary Options platforms, who target overseas clients?
27 February, AtoZForex – In our previous news report, we have outlined that ISA is collaborating with the Israeli government to take action against Binary Options trading platforms. Our team had a conversation with the ISA Spokesperson and Head of Investor Education Unit, Sharona Mazalian Levi. At that time, she was told that current legislation does not allow the ISA to take action against such trading platforms.
Following our conversation with ISA, now the Israeli Ministry of Finance has published a Memorandum of Law to amend the current Securities Law. Meaning that the ISA overseas Binary Options marketing ban is one step closer, as this Memorandum focuses on prohibiting the Israeli trading platforms from offering binary options to overseas investors.
What factors led to the ISA overseas Binary Options marketing ban?
Back in March 2016, the ISA announced the ban on marketing binary options to Israelis. This proposal came after the meeting of Israeli Parliament’s State Control Committee held a hearing to seek what the authorities are doing about the binary options threat. Despite, the Israeli binary options providers have been banned from offering their products to Israelis, they were still allowed to offer them overseas.
Ultimately, this gave rise to international complaints submitted to the Israeli authorities. The complaints were claiming both losses and allegations of criminal activities. Such as the tragic case of the Canadian trader committed suicide after 23Traders lost his money.
Israeli Ministry of Finance publish Memorandum of Law
ISA has since March last year taking collaborating with the Israeli government to amend the Securities Law and with success. After our recent contact with the regulator, we learned that the Ministry of Finance has published the Memorandum Law to extend the enforcement powers of ISA. The jointly press release of the Ministry of Finance and ISA stated:
“The Memorandum prohibits such platforms from offering their overseas clients to trade in binary options, and prohibits platforms managed in Israel from operating vis a vis overseas clients without an appropriate foreign license. The Memorandum does not permit trading platforms to operate vis a vis clients from countries in which trading platform managers are not subject to any regulation.
Entities who violate the prohibitions set forth in the Memorandum may be subject to various penalties, including criminal penalties such as two years’ imprisonment.”
Official Translation of Memorandum of Law
Moreover, ISA has translated and provided us exclusively the translated Memorandum of Law from the Ministry of Finance:
Bear in mind that the translation is intended solely for the convenience of the reader. Hence, it has no legal status nor does it assume any responsibility whatsoever to ISA as to its accuracy and contents. The industry is up for a change and not only is ISA taking actions. Other regulators like the AMF, AFM, CySEC and EUROPOL have each taken measurements in their own way against binary options.
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