Will I get my money back?
Since Binary options scammers have gotten wiser and quicker the question that lingers among victims: Is it possible to get your money back? Most people think they have no legal recourse because these companies are not regulated and take up residence in emerging markets to avoid the long arm of the law.
Governments are trying to shut down these companies for the sake of the macro economy, which doesn’t really help you with your personal loss. But that doesn’t mean you can’t get your money back. Discover the countries that have already begun banning the vile industry.
Where Are Binary Options Banned?
Banned in the USA
In the United States, the CFTC (Commodity Futures Trading Commission) pays a lot of attention to binary options companies operating from abroad. These brokerage houses face colossal fines as the US is very protective of its citizens from foreign based fraud. Recently, two Israeli-based binary options houses faced fines and restitution penalties exceeding $4 million and were also barred from US operations for violating the Commodity Exchange Act.
Canada Bans Binary
Canada has chosen to monitor the industry very closely instead of an outright ban. Like their southerly neighbors, Canada has the reach and ability to ban any individual companies who don’t abide by the country’s new rules. The Canadian Securities Administrators (CSA) have already banned 37 binary options brokers from any activity in the country due to their high-risk prospects.
French Says No Too
The governing financial body in France, the AMF (Autorité des Marchés Financiers), has blocked all online advertising for binary options brokers. The French have also placed a limitation on speculative investments greater than 1:20. These changes were applied after more than €4 billion has been fleeced from French residents over the several years.
In the Netherlands, the Dutch Authority for Financial Markets acted similarly to France and banned both binary options and CFD investments advertisements. The Dutch’s highest level of government regard these financial instruments as “toxic”. They believe the advertising is so deceptive that the promise of fast money with little risk pitch belittles the actual risk, which is very high.
Belgium Bans Binary Altogether
The most stringent of all the countries, Belgium has banned binary options and OTC Forex trading in their entireties. Belgian’s financial watchdog agencies became frustrated with the constant stream of fraudulent activities being reported from such companies and asked the government to ban the industry. The businesses targeted are any with aggressive marketing of highly speculative investments, especially those with short-time frames.
*Update – 24/10/2017
Israel Bans Binary Options Outright
Finally, the Israeli authorities have taken action. On the first day of the return to session after the summer break, the Israeli parliament unanimously passed a law banning binary options outright. The bill was passed in the Knesset with a 53-0 vote. Companies operating in binary options will have 3 months to wind down their operations completely. The ban is all encompassing for binary options operators, platform providers, marketing, sales and software production connected to binary options.