ISA plans action against Israeli Binary Options trading platforms, joining the powers with the Attorney General and the Ministry of Justice, according to the spokesperson of ISA.
9 February, 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, the latest developments signal that Israeli regulators are intending to put an end to the fraudulent activities of the Binary Options sector.
Binary Options industry in Israel
Last year, the Chairman of the ISA, Prof. Shmuel Hauser has reported to Israeli local media that he has addressed the legal authority of the government. He was asking to enable him to cease the marketing of Binary Options abroad. Such initiative was taken, as according to Mr. Hauser it is “an ugly phenomenon that is tarnishing Israel’s image.” Consequently, 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.
ISA plans action against Israeli Binary Options trading platforms
Following on this, I have reached out to the ISA Spokesperson and Head of Investor Education Unit, Sharona Mazalian Levi. I have asked her several questions in regards to the Israeli Binary Options trading platforms.
Kristina Frunze: What is the current stance of the ISA in relation to the Binary Options industry in Israel? Is ISA making any arrangements with the government to amend the securities law?
Sharona Mazalian Levi: “ “Current legislation does not allow the ISA to take action against such trading platforms. Moreover, ISA cannot act against criminal elements that operate such trading platforms. If the activity of these trading platforms constitutes a criminal offense of the penal code, the Israel Police is responsible for handling these cases.”
Kristina Frunze: Currently, are ISA and the Israeli government trying to amend the law to make it a criminal offense?
Sharona Mazalian Levi: “Together with the Attorney General and the Ministry of Justice, the ISA is currently drafting an amendment to the Securities Law. It will expand the ISA’s authority to take action against trading platforms that offer Binary Options to clients outside Israel.”
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