Malta’s MFSA alerts of binary option scam platform Gemini2.co

Malta’s MFSA alerts of binary option scam platform Gemini2.co

mfsa-malta

The Malta Financial Services Authority (MFSA) issued on Wednesday a warning notice against unauthorized binary options platform provider Gemini2, operating via www.gemini2.co. Moreover,   the platform seems to be a scam.

The broker offers automated binary options trading software. The MFSA noted it “is likely to be a scheme of dubious nature with a high risk of loss of money” and asked investors not t engage with it.

The MFSA is the sole regulator for financial services in Malta. It stressed Gemini2 is not licensed by ir to provide any kind of financial services in the country. The watchdog maintains a searchable register of all entities licensed to operate in Malta.

To start trading via Gemini2, investors are required to deposit at least $250. They can earn a profit of 100% of the traded amount. The platform claims its clients earn on average $50,000-$200,000 per week, or between $7000 -$28,000 per day. In fact, it says on its website it has not had a losing trade in over 2 years of trading and it even presents itself as “The worlds first and only no loss trading software!”.

In binary options trading, investors guess whether the price of a certain instrument would go upwards or downwards within a pre-determined time frame. Once the time is up, the option is deemed expired and the bet is settled. Depending on the outcome, a trader either collects a profit, or loses money.

Such instruments are quite controversial due to their risky nature and the lack of tight regulation. In the US they are allowed to be offered only by licensed providers and via exchange-traded contracts and in Canada binaries are not prohibited, but there are no licensed service providers. In Europe, most reputable authority bodies have expressed intentions to restrict high-risk trading in instruments, with binary options first on the list. Under the Israeli jurisdiction binary options are fully prohibited. France and the Netherlands are in the process of developing bills that would prohibit the advertisement of risky instruments and Germany is also considering the possibility, but has not made any steps as of now. Belgium banned from 18 August the distribution via online channels of over-the-counter (OTC) binary options, spot forex, and CFDs with leverage.

When engaging with unauthorized and non-regulated brokers, traders are putting their investments at higher risk. We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.

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