Belgium’s Financial Services and Markets Authority (FSMA) has issued a warning to the general public against the activities of binary trader EZ Trader, whose firm offers a variety of risky and unauthorized investment services, according to a FSMA statement.
FSMA operates as a watchdog for financial trading, securities and markets in Belgium, overseeing a variety of assets and compliance issues for traders and consumers. Its recent verdict launched against EZ Trader is hardly the first such action taken against the firm, as the French regulator Autorité des marchés financiers (AMF) issued a similar statement earlier this year in mid-January.
Unauthorized Status Draws Ire of Belgian Regulator
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The primary impetus behind such pointed labeling by these regulators stems from EZ Trader’s lack of status as an authorized investment firm or credit institution, namely in Belgium – for this reason it is legally obstructed from performing actions or providing its investment services to clients from, or in the confines of the country.
Binary trading options are inherently risky ventures in themselves, prompting the FSMA to issue a statement on the overall risks and dangers potentially inherent with such trading measures. That the company has failed to gain authorization in Belgium is just further reiteration of this cautionary tone, which has repeatedly been echoed by other regulators.
Indeed, EZ Trader offers a diverse package of options, including equities, FX, indices and commodities. According to the FSMA statement, “The FSMA therefore strongly advises against responding to any offers of financial services made by EZ Trader and against transferring money to any account number they might mention.”