The Cyprus Securities and Exchange Commission, one of Europe’s main regulators of forex and binary options brokers is considering banning binary options
“We are considering banning binary options but we’re still consulting about it”, said the regulator’s head Demetra Kalogerou at the trading industry summit iFX Expo International 2017 in Cyprus, quoted by he site Finance Magnates. According to her, the reason was conflict of interest and non-transparent pricing policy. “It will be more appropriate to suggest binary options only to professional traders.”
Additionally, Kalogerou noted, the CySEC is also looking into robo-advice, but for the time being the regulator is analyzing the situation and is deciding what to do.
In her speech she outlined the recent measures taken by the regulator to reign in the forex brokers under its supervision and pledged to continue to toughen the rules and impose fines until full compliance is achieved.
“We’re always open for discussion and to look into ways to make the industry run smoothly. But it will not be at an expense of supervision and enforcement”, Kalogerou said.
As for fintech and blockchain technology, Demetra Kalogerou said CySEC is planning to introduce regulations. Same goes for crowdfunding platforms, for which the watchdog will introduce regulations by 2018.
CySEC is the preferred regulator by numerous players in the forex and binary options industry such as SpotOption, OptionWeb, 24Option, BDSwiss, OptionBit, OptionRally, etc. It is also true, however, that they are also the ones who garner the most complaints.