ICO Regulations, Q3 Results, Binary Options Ban: Best of the Week

Catch up on last week's top stories.

Japan and France warn against ICOs

The Financial Services Agency (FSA) of Japan warned against the risks of ICO investment, but stopped short of condemning it entirely. It said that due to lack of regulation, price volatility and potential for fraud, the public should be alert when considering investment.

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It said in a statement: “You should have a deal at your own risk only after understanding enough the risks as above and the content of an ICO project if you buy a token. You should also pay careful attention to suspicious solicitation on ICOs.”

The Autorité des marchés financiers (AMF) of France also responded to ICO popularity last week, requesting that stakeholders share their opinions on how best to regulate these projects.

It conducted an analysis of ICO investment as it stands within the current legal framework, and identified three possible options for supervision.

Gain and XTB Q3 results

Gain Capital Holdings released its financial results for Q3 2017, which declined relative to Q2 but showed improvement from last year.

CEO Glenn Stevens commented: “Our solid third quarter results reflect GAIN’s ability to continue to execute and create value, even amid a period of multi-year low volatility levels.”

Polish firm XTB also published its Q3 results, which were very positive.

Investment Trends releases research on US and France

Research house Investment Trends found that the US foreign exchange market has contracted dramatically in 2017, and cited the exit of FXCM as a principle factor. However it also found that while the number of active traders declined, the number of new traders in 2017 (25,000) is comparable to 2015 and 2016.

In France, the number of active traders declined again this year, which is now a four-year trend. The 2017 advertising ban is thought to be a factor in this. At the same time, client loyalty has risen, measured by the drop in ‘switching activity’.

JFD leaves Russia

Brokerage JFD decided to leave Russia entirely, as a direct result of new regulations imposed in the country.

The Russian central bank officially became the chief regulator of the forex industry in May of this year, and severely curtailed the activities of offshore brokers.

Israel approves binary options ban

The Knesset passed its final approval of the ban on Israel-based firms selling binary options abroad. The law also bans technology providers from offering supporting services.

Shmuel Hauser, Chairman of the ISA, said following the vote: “The sites selling binary options cause serious harm to Israel’s image, encourage anti-Semitism and have hurt Israel’s foreign relations.”

This follows the ban on offering these products domestically, passed in March this year.

Vantage Global Prime buys Atom8.

Australian brokerage Vantage Global Prime has acquired FCA-regulated brokerage Atom8. The acquisition makes Atom8 part of the Vantage Global Prime group and it will be branded Vantage Global Prime UK.

Director of Sales and Marketing of Vantage FX David Bily said: “The acquisition of Atom8 is an exciting new chapter for the Vantage brand.”

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