The latest Israeli Binary Options marketing Ban Law Draft gets approval from the Knesset Reforms Committee. When will it come into force?
7 August, AtoZForex – The Knesset Reforms Committee has unanimously approved the latest draft of the Israeli Binary Options marketing ban law. This marks the nearly final step before the law acceptance. The approved version of the legislation will make the Israeli Binary Options technology operators to entirely change their business model or cease operations.
Latest Israeli Binary Options marketing Ban Law Draft Approved
According to the latest Israeli Binary Options marketing ban law amendments, the definition of managing an international Binary Options brokerage is extended to cover numerous functions that the technology providers currently offer their customers.
Such functions include operating the computer systems of the brokerages and pricing and clearing of the Binary Options among many others. Some other functions cover clearing of client funds and operating marketing or service centers. All of these functions are valid if they are carried out directly or through a service provider.
The Israel Securities Authority (ISA) has commented on the latest developments, stating that the Binary Options is more like gambling. This reflects the earlier comments of ISA head, Shmuel Hauser:
“Beyond the grave economic harm caused to citizens all over the world, binary option marketers also cause grave, destructive damage to Israel’s image. It is quickly gaining momentum and fueling antisemitism against Jews in general and Israelis in particular.
This law will allow the ISA to take unprecedented action against those parties that currently operate in Israel and cater to clients outside Israel. It will also allow imposing civil and criminal penalties, up to the imposition of actual jail time.”
What now for Binary Options technology providers in Israel?
The new Israeli Binary Options legislation considers the ban operations of a Binary Options brokerage in Israel as a whole. Moreover, it seeks to make the Binary Options activities a criminal offense. In case the law will be passed, soliciting Binary Options to Israeli residents or to foreign clients can get you in prison for two years.
In addition, the Binary Options activities will be considered as a violation of Israeli anti-money laundering (AML) laws. This could also mean prison and monetary penalties for criminals.
It is worth to note that the upcoming Israeli international marketing ban will only target Israeli Binary Options trading platforms. It will enforce technology providers to shift on other sectors in case they want to keep their business within Israel. Some of the companies have already changed the focus of their business. Just like that, SpotOption has given up Binary Options offering, turning their business in CFDs market direction.
Now, we can expect the new Binary Options legislation to come into force after three months. We can see the new Binary Options law in effect as soon as late September or early October.
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