After banning the promotion and sale of binary options trading to Israeli citizens, the Israel Securities Authority (ISA) plans to move forward with its cold-cut stance against the binary options industry.
The chairman of the ISA, Shmuel Hauser, is pushing for Israel’s Attorney General to conduct a review of Israel’s securities law. The ISA’s goal is to make changes to the securities law so that it will have the legal authority to ban Israeli-based binary options brokers from promoting and selling their products to foreign investors.
The ISA succeeded in its domestic ban on binary options. But because local brokers – who are said to be using shady business practices and spammy marketing tactics – are still allowed to offer their products to foreigners, the ISA claims their country’s image is being tarnished.
If the ISA succeeds, it will effectively put an end to Israel’s binary options trading industry. Hauser himself has compared binary options trading to gambling. In fact, he even went as far as to compare unscrupulous binary options brokers to destroyers laying waste to the people, akin to what is described in the Book of Isaiah. Beliefs aside, that’s taking it a little too far.
The ISA wants to take it a step further and get cooperative help from outside securities regulators in its efforts to prevent unregulated brokers from offering trading products.
Israel is currently home to over 200 binary options firms who employ more than 15,000 people. Demand for binary options trading has drastically increased in recent years as investors look for financial opportunities outside of traditional stock, bond, indices and commodity trading.
Israeli brokers have adapted to recent local bans by recruiting multilingual employees who’re able to persuade investors into buying their trading products.
The rise in complaints against the binary options industry has sparked bans and reforms across Europe, not just Israel. While binary options does pose some risks, as all investing does, the US and UK have taken swift action by allowing only registered brokers who are overseen by their local regulatory bodies to operate in their countries.
Will this be the next step in preventing black market brokers from operating large brokerage firms with massive marketing budgets? Or will shady brokers continue to find a way to operate and offer products to global investors?
Learn more at the following website:
Binary Options Regulations http://www.binaryoptionsregulations.net/