Israeli Watchdog Reportedly Bans Binary Options to All Clients
ISA on binary options: “due to their characteristics the service is essentially similar to gambling games."
A major escalation in the Israeli watchdog’s attack on binary options trading in the country has just been revealed. After it was already expected that the Israeli Securities Authority (ISA) will severely limit access to binary options, it now seems the ISA will ban the instrument completely.
Last year the ISA was reportedly planning to restrict access to binary options except for “sophisticated investors,” thus making it out of reach for the vast majority of Israeli traders. The ISA regulations on Trading Arenas (as it refers to online brokers) define a sophisticated investor as a client that has consented in advance that he is one, has a net financial worth of over NIS 12 million ($3.1 million) and trades over NIS 10 million ($2.6 million) a month.
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However, according to the Israeli business newspaper Globes, a source from the ISA now says that binary options trading will be banned for all clients. The popular simplified trading tool will be prohibited from all regulated Israeli trading arenas (as the law refers to online brokers) because “due to their characteristics the service is essentially similar to gambling games. The ISA thinks that continued binary options activity will hurt not just all clients (including sophisticated investors) but the reputation of the entire market.”
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At last some sense from one Financial Regulator. I have campaigned to have Binary Options correctly policed under the Gambling legislation in the host countries in which the clients reside. I suspect that the reason companies want to come under Financial Regulations is they do not have to disclose the percentage pay out in the way that say a Fruit or Slot Machine does!
So banning offering binary options to Israeli residents but permitting them to be offered overseas in an unregulated manner makes sense?
The reason companies want to come under Financial Regulations is that they can be marketed across Europe with impunity. Gambling regs do not have this umbrella regulation thereby requiring individual licenses from each country.
There are over 10,000 young adults that make a living in this industry. When it be prohibited they will all leave to places like Romania, Kiev and alike to make a living. Israel will loose thousand of young ambitious and good people overnight.
Yes, you are right ‘Jack’ Ryan from Suisseoption. Authorities need to stamp out this cancer on society and replace jobs with ethical ones that do not break the 8th commandment, “thou shalt not steal”.
Ps. I still want my stolen money back!
Binary Options sites are pure gambling dressed up as something to represent “investment” but designed to appeal in the same way as online poker, slots etc. Not calling for them to be banned but to be policed under the correct legislation that deals with gambling products – if it walks like and sounds like …….. Inducements such as “earn up to 75% per hour” & “an exciting new type of investment” abound. I believe in transparent and effective markets in which people can speculate fairly in an informed manner. If you are going to offer a pure gambling site you… Read more »