The British Columbia Securities Commission (BCSC) has issued an official warning on its website, listing LionsTradeFX.com as a company suspected of illegally offering services within the region. The warning provides information that the company has “made an unsolicited offer to a British Columbia (BC) resident to invest with Lionstradefx.com.” The regulatory watchdog has discovered that LionsTradeFX claims to be a binary options trading platform provider.
While standard financial “options are considered to be securities under the securities legislation in BC,” it is important to distinguish between legitimate options and alternative trading products that do not represent financial trading within the confines of the law. The statement was clear in proclaiming that “Lionstradefx.com is not registered to trade in, or advise on, securities or exchange contracts in BC.” It is not recommended to conduct business with organizations that fail to adhere to regulatory demands and restrictions, which are put in place in an effort to protect investors from potential fraud by companies whose operational activities are not monitored.
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The warning is another step in the BCSC’s tireless efforts to crack down on the binary options industry with full force. The commission has previously issued warnings against similar companies, urging the public to beware of firms working outside the law and without the proper necessary approvals and licenses.
Moreover, BCSC Director Doug Muir expressed his views regarding unregulated brokers several months ago. At the time he said: “Many websites claiming to offer binary options are simply vehicles for fraud. These fraudsters have no interest in registration or compliance with securities law, because they are not conducting any real business. They are just out to steal money.” The Canadian regulator has remained incredibly active in combating unlawful activity from such companies, that blatantly fail to comply with financial regulation and laws within Canadian territories.