La Commissione nazionale per le società e la Borsa (CONSOB), an independent statutory body set up to help police Italy’s domestic securities and futures market, has updated its blacklist with another unlicensed binary options firm called Rbinary Limited.
The CONSOB warning list features the names of businesses that are unlicensed in Italy and which are also believed to have targeted local investors or made fraudulent claims to be associated with regulated entities.
CONSOB explained that the brand ‘Rbinary,’ doing business through the website www.rbinary.com, operates a binary options website that offers related trading services but doesn’t hold the appropriate licenses or authorization to do so in Italy.
The binary options broker was added to the Italian regulator’s warning list, and CONSOB recommended that Italian investors avoid trading with this broker and its affiliates.
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Rbinary Limited claims to be incorporated under the laws of the Marshall Islands. The binary options broker, according to its website, shares a UK address with another unscrupulous financial services provider, the CFD broker SolidCFD.
This is not the first time that Rbinary has sparked regulatory concerns. Earlier in May, the UK financial watchdog FCA red-flagged the binary options broker. Moreover, the British Columbia Commission issued a warning that Rbinary was not authorized in April 2017, and the same action was taken by France’s financial market regulator (AMF) in 2016 when it included Rbinary in its periodically updated list of unregulated binary options providers. A few months later, the U.S. Commodity Futures Trading Commission’s (CFTC) included Rbinary in its RED List.
The Italian regulator follows in the footsteps of other authorities in Europe which have recently taken serious steps to curtail binary options activities and stem the flow of unregulated and non-compliant companies. These steps are meant to establish a hostile environment by imposing strict regulations, such as the French ban on all online advertising by binary options and forex providers. In some places, there is even an outright ban on the industry.
In addition, the Italian watchdog has published a warning against a list of financial entities that have been listed as trading scams by other European financial regulators. This is why CONSOB advises Italian investors to check its registers before they deposit any funds with a broker, especially if the related broker used aggressive marketing techniques.