Banc de Binary is Closing Down Due to Regulatory Pressures in IsrealBy Adam Teen | Thursday, January 12th, 2017
One of the biggest and popular binary option brokers, the Isreal based Banc de Binary has announced today that it is gradually closing down its operation.
There has recently been a lot of negative press coverage about binary option brokers operating in Isreal. Some have deemed the country a wild west for financial service providers. This and other issues have caused the Isreali government to clamp down on brokers operating in regions under their control. Although Banc de Binary is registered in Cyprus it’s operations were conducted in Israel.
To address this issue, Isreal’s securities regulators began to work very closely with their counterparts in the USA and Europe to investigate leaks and complaints made against brokers operating in Isreal.
Banc de Binary has claimed regulatory pressures as the main cause of winding down. As stated by the broker’s official spokesman, Banc de Binary will now be gradually closing down its operations and all clients are advised to withdraw money from their trading accounts.
This shouldn’t be a huge surprise to those who followed this broker’s track record. Last year Banc De Binary had to pay $11 million in penalties to the United States government last year because they have allowed American investors to sign up and trade. It was claimed they have done it illegally and they had to pay restitution fees.
There are many Isreali firms supporting the binary options industry. It’s a multi-billion industry in Isreal. In addition to binary brokers there are also many binary platform development firms, data centers and call centers and although it is currently illegal to offer binary options services in Isreal there is no law against selling them abroad.
However, this can soon change as the Isreali regulators are looking at ways to ban companies from selling binary options abroad as well. If this gets approved by the government we might see more closures of binary brokers on the way.
If you traded with Banc de Binary please share your experience below.Published in News & Analysis