OptionWeb, one of the oldest binary options brokerages in the industry, has laid off a number of employees in recent weeks, a company spokesperson has confirmed to Finance Magnates. The move happens as many other companies in the industry are consolidating operations as CySEC has started enforcing its new regulatory framework.
“As a result of the new legislation in place, OptionWeb was unfortunately forced to lay off 40 employees working for its various service providers outside of Europe. This decision was made as a direct result of these active workforce geo-location laws,” the company said in a statement to Finance Magnates.
Aside from this consolidation, OptionWeb has been focusing on some restructuring to its marketing division. Since the start of the year, the Cyprus Securities and Exchange Commission (CySEC) has been issuing guidance on how to adhere to best practices. Binary options companies have been heavily affected with automation taking center stage in the industry when it comes to on-boarding and retention.
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“Given that OptionWeb has always made it a point of honor to abide by the law in an effort to make it an honest and serious industry, we were under the obligation to abide by the new directives in place. OptionWeb has to this day never encountered any problems with the authorities and is determined to continue to abide by the law,” the spokesperson for the company elaborated.
According to the company, OptionWeb is committed to continuing its operations and its partnership with football club Paris Saint Germain is still actively in place, as can be seen on the broker’s website. Binary options brokers are under further threat – at present, the regulatory framework that is going to be put in place to help the French regulator Authorite des Marches Financiers (AMF) is still being drafted.
“The changes we have had to make in our marketing division were mandatory as a result of the various laws recently passed in France, Belgium and Holland. OptionWeb remains an active key industry player, as it is a law-abiding platform that has never received so much as a fine or complaint ever since its establishment,” the company’s spokesperson concluded.