The Ontario securities regulator has published a warning, focusing the attention of Canadian citizens on the operations of yet another binary options provider in the country that is not allowed to provide financial services under the existing regulator framework.
This time around, the watchdog is after an online entity named Redwood Binary Options, which is operated by a company called Redtulips Consultants. The firm has been registered under an address in the United Kingdom.
Canadian securities regulators have been somewhat vigilant when it comes to binary options
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According to the warning issued by the Ontario Securities Commission (OSC), the company does not comply with the existing regulatory framework for providing financial services in Canada. Therefore the firm is not allowed to deliver its services to Canadian citizens and residents.
The complex structure of the Canadian regulatory system, where each province has a separate financial regulator, makes the job of Canadian authorities harder when it comes to warning the public about certain unregulated financial services providers.
That said, all of the securities regulators have been somewhat vigilant when it comes to binary options providers. The market has been targeted by numerous companies, some of which claim to be based in Canada. Regulatory messages have confirmed multiple times that the firms do not have a physical address in Canada and are instead operating from offshore.