Following the months of discussions and amendments, finally, the Israeli Parliament approves Israeli Binary Options Ban Law. When will it come into force? What exactly will be included in the new legislation?
24 October, AtoZForex – Israeli parliament has finally passed the banning law for the Binary Options selling for local firms. This also means that now, the primary financial regulator of the Israel, the Israeli Securities Authority (ISA), will have a chance to start a broad crackdown on the industry. All of the 53 Knesset members voted in favor of the law.
Parliament approves Israeli Binary Options Ban Law
Israeli story with Binary Options industry goes back a long time. From the early beginning of the Binary Options trading industry, Israel has been the international center for a platform and marketing technology development. However, the latest developments signal that Israeli regulators intend to put an end to the fraudulent activities of the Binary Options sector.
Israel officials strongly believe that the image that is posed by the Binary Options industry on the Israeli market is harmful. Shmuel Hauser, the chairman of the Israel Securities Authority, has stated the following:
“The law will enable the securities authority to act in an unprecedented manner against those entities operating from Israel vis-à-vis clients abroad, by imposing civilian and criminal sanctions including imprisonment.”
When will it come into force?
On the 7th of August, the Knesset Reforms Committee has unanimously approved the latest draft of the Israeli Binary Options marketing ban law. The changes to the Israeli’s securities law has earlier received an approval this June. Now, the markets expect it to take place in the upcoming three months.
The Israeli Binary Options Ban Law will enable Israeli Finance Ministry to impose bans on other financial instruments in case they are sold in an inappropriate manner.
What will be included in the Israeli Binary Options Ban Law?
The initial legislation implied that the local brokerage would need to get a license in the jurisdiction from it took clients. This law was valid to Forex, CFDs and Binary Options brokerages. Yet, this part is no longer existing in the final bill. The Israeli government decided to only ban Binary Options providers.
However, the bill also implies the ban of not just operation of a Binary Options brokerage. Also, it imposes a ban on all aspects in connection to running a Binary Options business. This includes a provision of software services or payment services for the Binary Options trading. Moreover, it includes the marketing of Binary Options services as well.
The Israeli Binary Options Ban Law considers the operation of a Binary Options brokerage to be a criminal offense.
Specifically, it is subject to punishment of up to two years in prison. Moreover, it will also be considered a contravention of Israel’s anti-money laundering (AML) laws. This legislature can carry other punishments, such as further prison time and some monetary penalties.
The newly approved legislation is most likely to eliminate the problem of Binary Options in Israel. In fact, some of the firms have been downsizing in the anticipation of the law.
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