An amendment has been approved today by the legislative committee of the Israeli government marking a major milestone in the country’s finance sector. The amendment of the securities law, upon implementation, will see to the abolishment of marketing of binary options to foreigners by native Israeli providers.
Should the amendment be passed into law, binary options providers will be banned from conducting any business with non-Israeli citizens. In the eyes of the law, marketing of this product will be categorised as money laundering legislation “in light of the fraudulent nature that might accompany this industry”
Amendment to Law
The amendment has few preliminary steps before it is passed into law, the first, second and third readings by the parliament. However, binary options operations were prohibited in Israel about a year ago since the Israeli Securities Authority deemed this type of online trade illegal and analogous to gambling
Several sectors and government bodies are working tirelessly to ensure that this binary trading is taken down for good. These include: the Ministry of Finance, the government’s legal advisor, the Israeli Securities Authority, and the consultation and legislation department of the Ministry of Law.
Binary options firms whose clientele are foreigners have always operated legally in Israel without need for any authorisation or proper regulation. However, with the wake of large number of companies offering binary options trading, the Israeli Securities Authority and other local authorities has received numerous complaints from countries all over the world regarding the financial losses.
Taking up arms
The head of ISA, Prof. Shmuel Hauser had the following to say. “On top of the severe financial damage binary options providers cause to foreign citizens, they are continue to damage Israel’s international image and instigating anti-Semitism towards Jewish people in general and Israelis in particular. The new law will allow the ISA to act against those factors which on-board foreign citizens in an unprecedented manner which includes the imposing of civil and criminal sanctions and even imprisonment.”
Total Ban ?
The ISA, over a year ago, took up arms against the binary trade menace. First on their list was banning of binary options providers from offering the binary options to Israeli citizens way back in March 2016. Prof. Hauser continued to add that the binary options trade is a fraudulent industry that “burns the money of orphans, widows and pensioners”.
The move to ban binary trade for good are not without its down side with the most affected being the brokers and the technology providers. Notable repercussions have occurred in the past year. In the last six months alone, we have witnessed complete closure of Banc De Binary, the closure of the local call centres of 24Options and Anyoption, and the shut-down of many unregulated binary option providers.