Israeli financial authorities joined forces with regulators from the United States of America, Great Britain, France and Belgium to investigate binary options brokers operating from Israel and offering binary options trading services to traders all over the world.
Remember, Israel banned providing binary trading services to Israeli citizens in April 2016, but now the ISA is working on a law that will also ban Israeli-based companies from providing binary trading services overseas, which was not the case in the past six months.
Israeli Authorities Assist in Binary Options Investigations
Shmuel Hauser, man-in-charge of the Israeli Securities Authority (ISA), explained how monitoring of binary brokers cannot be the mission of a single regulator, and how they have to join together in creating safe trading and investing environment.
Hauser said that regulators in the United States, France, England, and Belgium all asked for help and assistance, Reuters reports. All countries mentioned have their own investigations about several binary options brokers and need ISA’s support. Still, Hauser declined to give any further information regarding the number of companies and their respective names.
In previous investigations against binary options scams, local investigations teams didn’t want to comment ISA’s assistance and whether or not they were helpful during investigations. The fact remains how many unregulated binary options brokers are located in Israel.
Hauser admitted how it seems that banning binary trading from Israel is not enough to create a safe trading environment, but how ISA also needs support from local authorities to fight such binary brokers. In average, ISA every year receives 4 requests for assistance by foreign regulators, and in the past two years, they received around 30 requests for help in investigations.
Binary Options Regulations
Many of such scam binary brokers are using high-pressure tactics and unprofessional behavior to force the trader to deposit more and more money. However, Hauser explained that ISA is helpless when it comes to individual filing a complaint, as binary options are a multimillion industry. He is hoping that Israeli law will change, for the benefit of the trader.