Finance Magnates has learned that binary options platform developer, SpotOption, is organizing a lobby group for the controversial industry as it finds itself under attack by regulators in different markets. SpotOption has been working on this matter for months now and today it will hold a forming meeting with other regulated binary options firms in Nicosia, Cyprus.
The binary options industry has a number of pressing issues it would want to tackle by working together – chief among those are stopping more regulators from placing limits on the activities of CySEC-regulated firms in their jurisdictions and switching focus to fight against unregulated binary options providers who are hurting the image of the industry, as well as the regulated firms’ bottom line.
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We have recently seen Israel banning binary options completely, the French watchdog asking parliament for a ban on any form of digital advertising of binary options and Belgium following up with an outright ban of the trading products from the retail market. The latter two are most alarming for CySEC-regulated firms as they set a precedent for other EU countries to invalidate the MiFID license passporting of binary options firms.
The idea of the need to organise regulated binary options provider has been floated for a while. In background talks with Finance Magnates various players have complained that regulators don’t really understand the market and are trying to crack down on regulated firms, as they are easy to find, while driving traders to unregulated and unaccountable offshore brokers.