Banc De Binary Retracts CFTC Press Release
Last month, binary options broker Banc De Binary announced that it had contacted the CFTC in regards to receiving US regulation. The broker has now announced that they are retracting the earlier press release as it was “inaccurate”. Banc De Binary did not explain exactly what was inaccurate about its previous statement but posted that the CFTC has told them that it is forbidden for them to market their product to US persons.
“BDB’s representatives issued a press release on January 25, 2013 regarding its operations in the United States. BDB retracts the press release. The release was inaccurate in several respects. BDB has been advised by the CFTC that it is not permitted to market binary options to United States persons. Thus, BDB will not take orders from United States persons. BDB intends to abide by all laws regulations and hopes to obtain permission to do business in the United States. Until then, BDB will not be permitted to offer its products to United States customers. Please check back on our website periodically for updates. Thank you for your patience.”
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No surprise there, when they first announced approaching the CFTC I was going to comment that BDB must enjoy pain or appearing silly as they back out, being the only two possible outcomes of such a move… especially with their business model (they’d be targets and an easy kill for the CFTC for sure.)
More like the Fox Clan woke up and realized it was a bad idea to try joining forces with the wolf clan.
I get the feeling that they put out the PR after getting the CySec regulation to draw attention to themselves and then the CFTC said something in the line of “we have no idea who or what you guys want and if you ever want to actually get regulated in the future or not to get fined now, don’t make an announcement that sounds like we endorse you.”
Binary Options are at the stage that retail FX was 9 years ago….the wild west. With the increasing number of new entrants and rapid growth of the client base, it is firmly on the radar of most regulators. That can only be a good thing for clients and for the industry. The only problem is that it falls somewhere between the remit of gaming regulators and financial regulators…so who will be responsible?…
From what I’ve read, it seems that BDB was treading on some very dangerous waters with their previous inaccurate statement. It makes you wonder, though, why the CFTC forbade the BDB from marketing to US customers. One can only wonder the reasons behind the restrictions.
because it has no appropriate license, technically only NADEX is licensed in the US to offer binary option contract, but this product is VERY different from what you see the non-US binary brokers offering
VERY different because it is regulated, this site has many Binary banners not surpised. All these companies besides NAdex are run by Tech companies based in Israel, all u need to do is a litle research, read between the lines and u see ti is wrost than forex 9 years ago and more sophisticated schemes except for all the cheesy logos they put on all their websites, none of which are true
I keep on hearing how Forex was so “bad”, “wild west” prior to CFTC/NFA stepping in to regulate but in fact this couldn’t be farther than the factual truth. I dear anyone to do some FACTUAL research on that assumption and i bet you will find the exact opposite .
the latter
the latter
Let me kindly point out §5 Part III of the Cyprus banking law of 1996:
No person, other than a bank, shall use in any language
the word “bank” or any grammatical variation thereof of
the word “bank” in connection with any trade or business
carried on by him unless the Central Bank has granted its
prior written approval and subject to any conditions which
the Central Bank may consider proper to impose.
As if anyone gives a F down there. No, instead they get give them an EU passport..
There is a lot going om here. First of all the CFTC has no direct control of these off shore entities. Despite what is said, they can’t fine them if they don’t have a US domiciled presence. They CAN come after you and I. The majority of these “brokers ” are little more then bookies. Some, such as Banc de Binary boarder on legitimate, and probably would not mind some kind of regulation, as it would take the rest of the competition out of the picture. In an effort to appear legitimate, these brokers in Cypress “encouraged” the government to… Read more »
Cypress is a tree..
Most of These BO technology providers promises are far from their delivery. I know a group waiting now over 6 months for a working product and another one waiting 3 months and can’t even get a backend demo of the system for training staff.
well they can quickly deliver a very basic product, if you want more – then it does take months