Israel’s financial markets regulator, the Israel Securities Authority (ISA) has published on its site a warning that the local P2P binary options exchange Fairtrade is operating in violation with the country’s laws banning trade in binary options.
According to the document, on January 4 the ISA has sent Fairtrade a letter informing it of the violations and giving it seven days to halt its activities. The deadline expires this week, but so far the site of the exchange appears to still be up and running.
We remind you that in 2016 the Israeli legislation banned the offering of binary options to local residents. This, however, has not stopped the thriving Israeli binary options industry to target clients abroad and fleece them shamelessly.
According to the site Finance Magnates, Fairtrade launched towards the end of 2016 and was claiming that its activities are legal and are not limited by Israel’s restrictive regulations on forex and CFD products and strict trading arena requirements. Back then the owners of Fairtrade told the site that they do not need a trading arena license as people were trading among themselves on the P2P platform. Obviously, ISA disagrees with their claims.
Fairtrade is the second binary options brokerage ISA goes after recently. In November it fined about $130 000 the unregulated DGI Markets and its principal for providing financial services to local investors.