Bank De Binary, one of the biggest binary options brokerages in the industry, intends to abolish all bonus practices, sources have shared with Finance Magnates. The company is set to dramatically overhaul its business model in order to have a favorable relationship with European regulators.
the binary options industry has been intensely scrutinized and reprimanded by financial regulators
The move is an important milestone, since it could change the direction of the whole regulated binary options industry. The Cyprus Securities and Exchange Commission (CySEC) and the European Securities Markets Authority (ESMA) have recently ramped up their pressure on the industry, with some countries in the EU like France, Belgium and the Netherlands recently starting a crusade against regulated binary options and forex and CFDs trading.
4 Ways DeFi is Changing Finance: And the Platforms Making it HappenGo to article >>
The news comes at a time when the binary options industry is being intensely scrutinized and reprimanded by financial regulators and governments all over the globe. News about brokerages soliciting clients from jurisdictions that are outside of their reach have been damaging the regulated part of the industry.
Banc De Binary is taking a bold initiative by making this move and pushing back against regulatory backlash over bonus promotions.
CySEC has been actively monitoring binary options brokers in recent months and a number of companies have laid off staff and have cut back operations. The consolidation of the binary options industry may accelerate if some brokers focus on compliance quicker than others.