Banc De Binary, one of the major and longest running binary options broker is closing up shop and has already stopped accepting new clients from the EU, shows a check of SMN staff.
According to company officials, quoted by the site Finance Magnates, the main reason behind the decision to wind up its business is the continuous bad press Banc De Binary has been getting recently. “It’s become the wild west in the past few months,” the unnamed source told the site. “Its just not worth the tarnished reputation. I don’t see how we can continue operating under such scrutiny and public image.”
According to him, all arrangements have been made, the broker is already sending back the funds of its clients and will officially announce the decision shortly. “They are literally about to kill a five hundred million dollar company, but even worse – the icon of the binary option industry,” the Banc De Binary official said.
Banc De Binary has been around since 2009, and is one of the largest and oldest binary options brokers. It offers trading in more than 200 tradable assets, such as forex, stocks, commodities, and indices. It says on its website it serves retail and institutional clients in more than 100 countries.
Banc De Binary head office is in the country of its origin – Israel, but operates with a license from the Cyprus Securities and Exchange Commission (CySEC). Up until recently the broker also had a Belize license, which it lost in October 2016.
The loss of the Belize license was one of the last blows the broker got in 2016. In February it reached an agreement with the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to pay more than $11 million in settlement, after it was accused of illegally targeting US citizens. This made it one of the most severely punished binary options broker of 2016.
Also in 2016 Banc De Binary tried to polish off its reputation by issuing a public statement warning the unsuspecting traders to beware of unregulated brokers, but apparently the move was unsuccessful. There have also been reports that it was planning to cancel its bonus promotions program and overhaul its business model. It seems this has not worked either.