Since the inception of the binary options trading industry, Israel has served as an international hub for platform and marketing technology development. But now it seems this is all might be coming to an end. The regulators in Israel are no longer satisfied with only restricting access to Israeli citizens and now wish to completely prevent the operations of international firms.
Prof. Shmuel Hauser, Chairman of the Israeli Securities Authority (ISA), told Israel’s Channel 10 News that he has turned to the government’s top legal authority with a request to amend the applicable law to allow him to stop the marketing of binary options abroad as it is “an ugly phenomenon that is tarnishing Israel’s image.”
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This extraordinary negative statement from the ISA head comes after multiple media crusades against online trading (and binary options firms in particular) by various Israeli newspapers. After their “witch hunt” got FX severely limited and binary options completely banned for Israeli traders, they turned their focus on the international firms operating out of the country. Hauser, who always viewed the industry as predatory and essentially illegal gambling in nature, did not need much more than that to request that his powers be expanded for this purpose.
Usually binary options companies operating out of Israel are subsidiaries of firms regulated in Cyprus or the UK who manage offices, call centers and development centers in those markets as well. If and when this comes into force it will simply push the companies abroad and to completely severe ties to Israel – putting an end to Israel-based call centers costing local jobs and taxes while keeping marketing as usual.
Finance Magnates sources in the industry have also confirmed that European regulators have been pressuring the ISA to take action against call centers operating out of Israel. Recently France and Belgium both banned the marketing of binary options to their citizens with the Netherlands revealed to be the next domino to fall.