de | cn | ru

Market News

Israel top cop admits organized crime behind binary options, Knesset to pass bill next week

 Israeli crime syndicates have been profiting from the binary options scams, Gabi Biton, a police Superintendent investigating financial fraud and money laundering told a Knesset panel, quoted by The Times of Israel.


In his speech the senior police officer admitted the authorities have failed for a long time to realize that the binary options industry was a scam and that behind it were standing organized criminal groups who profiteered from it.


“Our eyes have been opened,” Biton told the Israeli MPs. “What we’re seeing here is a massive organized criminal enterprise. We are talking about criminals at various levels of crime organizations, up to the very top.” According to Biton, the “lucrative scam” of binary options attracted established organized criminal groups who saw the huge economic potential and their bosses hired professionals, foreign language speakers and payments options to help them carry out the fraud. “It has grown to monstrous proportions,” Biton added. “I can say that we are discovering new paths of money laundering through this crime that we were not aware of.”


Biton was speaking at a Knesset panel discussing the draft bill banning the offering of binary options to clients abroad and accepting foreign clients by Israeli brokers. The bill is due to be passed by the Knesset next Monday, local media report.


According to The Times of Israel, however, the final version of the bill is “watered down” and the original draft prepared by the local regulator, the Israel Securities Authority (ISA), has been weakened. To be more precise, the original was stipulating that online brokers Israel and targeting customers abroad must do so with a license from the country where they operate. This included both binary options and other financial instruments like forex and CFDs. The final version, however, has only kept the binary options ban and has left out the other instruments.


As per the media reports, this means that the binary options brokers who are currently in hot water, would simply change their business model and start offering other types of financial products. We are already seeing this with major binary options brokers with Cyprus licenses, but in practice operating from Israeli call centers who are remodeling. In July 24option said  it stops accepting new binary options clients and will start offering trading in forex and CFD instruments. A few days earlier  anyoption – announced it will merge with Invest.com and will focus on the offering of forex and CFDs. Earlier this year one of the majors - Banc De Binary shut down its operations altogether.


The Israeli binary options industry has been operating undisturbed for years, allegedly defrauding thousands of gullible people out of millions. According to various estimates, the around 100 companies generated an annual turnover of between $5-10 billion and employed thousands of people, mostly in their call centers.

 

 

TAGS: binary options  israel  ban  fraud  scam 
Broker Country Regulation Platform Min Deposit Review
US CFTC, NFA MT4, Web,
in-house
$50 Review Website
US NFA, CFTC MT4 $250 Review Website
Cyprus, UK, Mauritius CySec, FCA, IFSC MT4, MT5, Web $10 Review Website
Cyprus, Australia CySec, ASIC MT4, Web,
Mobile app
$100 Review Website
Australia ASIC MT4, MT5,
IRESSTrader
$100 Review Website
UK, Cyprus, Australia FCA, CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia FCA, ASIC MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
Australia ASIC MT4, MT5 $100 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website

More Forex Market News

AFM also plans to make ESMA’s product intervention measures permanent

Apr 18 2019 13:13:32

  The Dutch financial regulator AFM announced its plans to make the product intervention measures of the European Securities and Markets Authority (ESMA) permanent. Read more

BaFin joins FCA and other regulators in warning against Wise Banc

Apr 17 2019 17:15:37

  Germany’s federal financial supervisory authority (BaFin) warned against Wise Banc and ordered it to cease offering cross-border proprietary trading services to German investors.   A brief review of the broker’s website (www.wisebanc. Read more

FCA updates its warning list with CryptoExp, CapitalXP, and 4XFX

Apr 16 2019 14:44:31

  The Financial Conduct Authority (FCA) has recently updated its warning list with unregulated brokers CryptoExp, CapitalXP, and 4XFX. According to the regulator, these brokers have been providing financial services or products in the UK without its authorization. Read more

CySEC warns CryptoCapitalFX is a clone

Apr 12 2019 14:36:41

  The Cyprus Securities and Exchange Commission (‘CySEC’) officially warned investors that CryptoCapitalFX (operating via www. cryptocapitalfx.com) is not licensed to provide investment services in the country. Read more

ASIC warns that some Australian brokers are soliciting European clients

Apr 11 2019 14:31:20

  The Australian Securities and Investments Commission (ASIC) made an official statement, warning local forex brokerages to be careful not to break any overseas laws while offering OTC derivatives to retail investors in Europe and other overseas jurisdictions. Read more

Spain’s CNMV updates its warning list with a bunch of shady brokers

Apr 10 2019 17:36:00

  The Comision Nacional del Mercado de Valores (CNMV) has updated its warning list with BrokerYard, Capital245, CryptoEU, Pepperdyne, and UproFX, among others, earlier this week. Read more

UK’s FCA blacklisted unregulated broker Hope Area

Apr 09 2019 09:50:06

  UK’s financial markets and services regulator, the Financial Conduct Authority (FCA), blacklisted unregulated forex and binary options broker Hope Area on Monday.   “This firm is not authorised by us and is targeting people in the UK. Read more

Austrian financial regulator blacklisted EZCryptoplace and TradeToro

Apr 05 2019 13:36:59

  The Austrian Financial Market Authority (FMA) blacklisted unregulated brokers EZCryptoplace and TradeToro earlier this week. Read more

Belgium’s FSMA updates its crypto warning list with Bears Markets and several other brands

Apr 04 2019 16:17:51

  The Belgian Financial Services and Markets Authority (FSMA) issued an official notice on Tuesday, warning the public against www.bearsmarkets.com, and several others unregulated websites. Read more

London Capital Trade, Grand Fx Pro, and CfdPremium end up on CONSOB’s warning list

Apr 03 2019 14:15:22

  Unregulated forex brokers London Capital Trade, Grand Fx Pro, and CfdPremium have been the latest additions to the warning list of the Commissione Nazionale per le Societa e la Borsa (CONSOB). Read more

de | cn | ru