New Zealand FMA Joins ASIC in Warning against Banc De Binary

Cyprus headquartered Banc de Binary is facing resistance from regulators in Australia and New Zealand.

Several months after the Australian Securities and Investments Commission (ASIC) announced that Banc de Binary is an unauthorized service provider and that it recommends retail traders in Australia to avoid it, another watchdog from the region has issued its own, similar warning.

The Financial Markets Authority headquartered in Auckland, New Zealand has issued an official warning on its website, warning the public that Banc de Binary is not authorized to provide its services in the country.

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A number of Cyprus based companies are already targeting Australian and New Zealand residents with unsolicited offers for binary options trading and the watchdogs have not created a framework for the companies to becoming regulated easily.

With the vast number of brokers that are providing their services in both countries outside of the regulatory framework, customers have been convinced to deposit only on the basis of a Cyprus Securities and Exchange Commission (CySEC) license.

In the past months, we have seen the first signs of CySEC becoming somewhat more aggressive about enforcing the rules, however that doesn’t mean that the regulator is looking after the interests of clients outside of its jurisdiction.

In the case of New Zealand’s FMA and ASIC from the land down under, there is no separate license for binary options providers. This means that in order for brokers to be providing a regulated service, those have to be regulated just like forex brokers are.

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