The Netherlands Authority for the Financial Markets proclaimed that, the Netherlands is to issue a promoting ban on binary options and extra toxic investment products. The regulator of Dutch financial services thought it was working with Jeroen Dijsselbloem and Holland’s finance minister, to contrivance a ban that would forbid advertising by foreign companies providing Europe binary options trading to Dutch clients and probably advertising of other products, like extremely leveraged CFDs or contracts for differences.
Merel van Vroonhoven who is the chairperson of the AFM Executive Board, in a press release previous month said that, “Publicity for these investments induces consumers with the view of making money fast, but it is essentially the case that you can simply lose all of the money you have invest”.
In recent month The Israel times been specifying massive scam by means of Israeli binary options firms, start in March with an article authorized “The Wolves of Tel Aviv.” The fake firm’s significance to be guiding their clients in making profitable short-term investments, but are actually using several tricks, comprising misrepresentation, apparently operating rigged trading platforms and absolute rejection to return deposits, to steal their customers money.
Entirely Israeli binary options firms are at present banned by the Israel Securities Authority, but the firms remain allowed to seek customers abroad. The US has banned foreign binary options firms from targeting its countries, and several countries, including the France, Canada and US, are investigating Israel-based binary options scam on behalf of their residents who have been cheated.
Belgium come to be the 1st European country to ban the industry in August.
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Nicole Reijnen, a spokesman for the AFM said The Times of Israel that she gets the soon-to-be-implemented publicising ban as a step towards probably banning binary options overall in the Netherlands. The supervisory body had received 50 complaints previous year about binary options.
While MiFID II is applied in 2018 we have more possibilities to ban toxic products for customers like binary options. Reijnen also stated that the AFM was in a lawful battle with Optieclub, which Dutch courts had enforced the AFM to authorization over a year ago. This is the single company in the Netherlands that has a licence from us. However we think that Europe binary options trading resemble betting. Customers can misplace lots of money in just a second. To gain in an extended term is actually difficult. We imagine the result of the court case will come Tuesday.
Temporarily, a German regulator mentioned in the daily Die Welt newspaper alleged that BaFin (the Bundesanstalt für Finanzdienstleistungsaufsicht) is considering banning binary options accompanied by other financial products as a customer protection extent.
Anja Schuchhardt who is press officer at BaFin, Contacted by The Times of Israel, denied to comment on a ban, but said BaFin was seeing probable steps.
She said that, “As the German Retail Investor Protection Act originated into force, product interference (section 4b of the WpHG) has been one of the tools accessible to BaFin, but it is at all times regarded as a last option”. In the coming period, BaFin will continue to deliberate prudently and with a sense of part which exact steps are essential, at first with a view to customers, who must be successfully protected, and in 2nd with a view to the associated interventions in the marketplace which should be kept to the complete minimum prerequisite.
Denmark issues warning
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Denmark, temporarily, issued its 1st official notice against binary options.
On September 21 The Danish Financial Services Authority warned customers against investing in alleged binary options presented on the internet.
FSA director Ulla Brøns Petersen said that, “Europe binary options trading are actually abstract product that has extreme more in common with lottery than asset”. It has also been revealed that a number of providers disrupt basic consumer guidelines. Thus, we need customers to stay away.
She also added that in spite of the fact that several of the Europe binary options trading companies are regulated in Cyprus, providing they license to work in the EU, they involve in dubious business performs.
According to Petersen, “We perceive from clients that the companies often appeal them with a starting bonus, which, though, you can simply get if you even make a deposit. There are as well problems with withdrawing money. Lastly, the companies’ telephone sales persons use an violent sales method, and do not at all live up to the guidelines of accountable advice”.
Petersen additional that no Danish consumers who lost money to binary options had been capable to get it back over government channels. She also said that, “You can protest to the Financial Ombudsman in Cyprus, but inappropriately we have no examples wherever it has directed to customers receiving their money return”.
The Netherlands ban and the declarations by other supervisors have come among a flurry of bad international press for the Europe binary options trading business, much of which is run under Israeli ownership or run from Israel.
