After a flurry of seemingly anti-binary options news recently the industry feels as if it is under attack. Under these unfortunate circumstances Finance Magnates sat down with one of the most important figures in the binary options world, Pini Peter – the founder of leading software developer SpotOption – for an exclusive first interview about the international regulatory landscape. The full length interview will be published next week, stay tuned for many more interesting details!
The first subject that the SpotOption founder wanted to talk about is the financial nature of binary options. He emphasis that the most important national regulators in the world, in the US and Japan, both deemed binary options to be financial instruments. In fact, binary options were traded in the US for decades before 2007 and now “even the NYSE will launch binary options, so how can anyone think they are gambling instruments?” he asked.
In addition to the Japanese and American markets, binary options are regulated as financial instruments in Australia, Malta, Russia, and the UK. The only reason that Peter can think of that any regulator would consider binary options as gambling is if bank and broker lobbyists would influence them and turn them against the new industry.
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The market matures
In general, Peter says that the explosive growth of binary options was something that no one ever expected. The volumes, number of traders and number of brands have all increased exponentially, more than even he dreamed of. Due to this, the industry has attracted heat from traditional forex brokers, stock options brokers and banks that all look in envy upon its performance.
Regarding regulations, Peter is very welcoming and supportive of any country that wants to regulate binary options trading, for the protection of operators and traders alike. He says that regulations develop the market and help it mature. He is very supportive of the regulators in Cyprus that he feels are doing all the work other European regulators are yet to do. “Cyprus is a small country, but CySEC are the only ones that said they will regulate binary options and actually took action. Larger European regulators that have announced that binary options are indeed a financial product, need to step up and also take responsibility as CySEC has.”
Regarding the announcement of the banning of binary options in Israel and more, stay tuned for the upcoming, full article here at Finance Magnates.