Breaking New! Canada Bans Binary Options!
In breaking news I have just learned that Canada has made it official. Binary options are illegal in the country. The move comes after years of attack from outside sources using binary options to commit fraud against Canadians. If you have been following the issue you are well aware that Canada has been at the forefront in the fight against scam brokers issuing warning after warning to no effect. Critics of the new law it will likely have limited effect as well since the scammers are already operating in the country across the Internet with little regard to law.
Specifically, the new law bans offering, selling, trading and advertising of binary options. What it doesn’t do is anything to prevent a Canadian citizen from finding binary options on the Internet, or for a scammer from finding them. There will always be gullible folk looking to get rich quick, and others who want to help them do it. If Canada were smart they would adopt a legal form of binary trading and promote that for all it was worth.
Banning Doesn’t Work
If there is one thing we have learned from all the warnings, fines, restrictions and bannings is that you just can’t keep binary fraud out of a country. Those scammers are just too good at what they do, they are wily when it comes to the Internet and frankly, they don’t care about anybody’s rules or regulation. This is all too evident in Europe where a number of countries have opted to ban binary options altogether.
Belgium is the second of two such nations having issued a blanket ban on binary trading August of last year. Since then the Financials Services and Markets Authority, FSMA, has been very busy issuing warning after warning about brokers and services operating within their jurisdiction. The latest includes 9 brands, many of which are newer brokers unregulated by anyone including CySEC. The primary complaint for all is operating without a license or registration, secondary complaints include cloning. The FSMA makes note that several brokers are using marketing language and images to make themselves look like well known and trusted businesses in order to lure in clients.
New Zealand Accepts Binary Options
New Zealand is another country plagued by binary options fraud and for a very simple reason; its citizens are prosperous with disposable capital to spend. Despite the issues with fraud the country has decided to accept binary because there are those who want to trade. The nations regulators have issued a statement saying that any form of derivative trading with expiry of less than 3 days is require to have a license. This include binary options and CFD’s brokers based in New Zealand and abroad which opens the door for European based brokerages to operate legally. There is little word yet on what the requirements will be or what type of trading will be allowed.