Banc de Binary Facing Resistance From Industry Watchdogs in Australia and New ZealandBy Adam Teen | Wednesday, January 20th, 2016
Few months ago the Australian Securities and Investments Commission (ASIC) pointed out that a known online broker, Banc De Binary is actually unauthorized to provide binary trading services.
The commission urged Australian retail traders to avoid the company.
Now, another watchdog, the Financial Authority based in Auckland, New Zealand has issued very similar warnings on its website. They warn the public about using Banc de Binary as they have no authorisation to operate in New Zealand.
Both warnings from the financial authorities come as a response to the influx of Cyprus based binary brokers targeting residents in Australia and New Zealand. The watchdogs have failed to create a needed framework for companies to become easily regulated.
Despite that, many brokers decided to provide their services to residents of both countries solely on the basis of being regulated elsewhere, usually holding a trading licence issued by the Cyprus Securities and Exchange Commission.
Although we have seen CySEC being more proactive recently in enforcing their rules this does not mean that they will look after clients from outside its jurisdiction.
At present, the Australian Securities and Investments Commission, as well as, New Zealand’s Financial Authority do not provide a separate licence for binary options brokers. In order for them to become regulated in this part of the world, they would require to have a standard forex broker licence.Published in News & Analysis