The Chairman of the Israeli Securities Authority (ISA) wants to take actions against international binary options firms that have Israel-based call centers. What would be the outcome if Israel to ban overseas Binary Options marketing?
October 21, AtoZForex – From the early beginning of the binary options trading industry, Israel has been the international center for a platform and marketing technology development. However, it appears that it might come to an end as the Israeli regulators would like to prevent the operations of foreign firms.
The Chairman of the ISA, Prof. Shmuel Hauser has reported to Israel’s Channel 10 News that he has addressed the legal authority of the government, asking to enable him to cease the marketing of binary options abroad. Because it is “an ugly phenomenon that is tarnishing Israel’s image.” This statement was made following campaigns of various Israeli newspapers against online trading , particularly binary options brokers. Consequently, the forex trading was restricted in Israel, whereas binary options were forbidden for Israeli traders. Now, the regulator takes steps even further, focusing on the international firms that operate from the country.
What would be the outcome if Israel to ban overseas Binary Options marketing?
A lot of binary options firms that run their operations from Israel are subsidiaries of companies regulated by the Cyprus Securities and Exchange Commission (CySEC) or the Financial Conduct Authority (FCA). Those companies also have call and development centers in the UK and Cyprus markets. In case the regulation proposed by Shmuel Hauser comes into force, it will push the companies to leave Israel. Therefore, the Israel-based call centers of international brokerages would be curtailed, costing local jobs and taxes whilst keeping marketing as usual.
In addition, the idea to implement measures against call centers functioning from Israel wasn’t solely initiated by the ISA. But European regulators have pushed the Israeli watchdog to take action against international brokerages’ call centers based in Israel. In August, both France and Belgium, regulators banned the marketing of binary options to their citizens. Now, the Dutch regulator is also planning to implement the same measures.
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