Japanese regulators black list binary options firms

AtoZForex.com Lagos — Japan, just like many other countries treat binary options as financial instrument. Japan’s Financial Services Agency (FSA) has again added new entrants to its “Black list” of international organizations which offer their services to Japanese clients without the required license, therefore making their business activities unlawful.

The binary options industry in Japan operates under strict regulatory oversight, requiring all companies to be duly licensed to carryout such activities in the country. Based on this principle, Japan’s FSA has issued a public warning against ITCM Pte. Ltd., a Singapore-based company that operates under the name Platinum Option. The company operates in both Japanese and English language, without necessary authorization to operate in Japan.

Also, it was discovered that options with one-minute expiries is being offered. This timeframe is considered too short and therefore considered gambling. Hence, prohibited under the Japanese binary options law which has also resulted in Japanese regulators black list of some firms. The full list of the added firms can be viewed here.

In the same vein, the Finanacial conduct authority has also created a frame work to enable binary options as a financial instrument, rather than a gambling instrument. The UK Government is consulting on proposals to treat binary options as a financial rather than a gambling product. Therefore, the FCA Binary Options Regulation could happen soon. This would mean binary options would be fully regulated as a financial product, in line with practice across most of the EU, and no longer be regulated by the Gambling Commission.

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