Major global financial service, MasterCard, announced how they will join Visa in limiting access to deposits regarding binary options trading. Visa did the same thing in September 2016 for the territory of the USA and Canada, but MasterCard, for now, issued new guidelines for Canada only.
MasterCard stated in their report how there is not a single regulated broker in Canada. Remember, binary options in Canada are regulated on provinces’ level, even though there is also a financial regulator for the entire Canadian territory. MasterCard also warned clients to be aware of the new restrictions and unregulated broker that operate on Canadian markets. Of course, this is also a good way for MasterCard to protect themselves from being used in financing illegal financial entities.
Binary Options in Canada
As Canadian authorities didn’t provide a single license for binary options brokers, they attracted a large number of unregulated brokers whose accounts and business are hard to track. This exposes traders to much higher level or risk than trading with regulated brokers.
Canada is not the only case where regulatory bodies caused worse trading condition by simply ignoring binary options brokers or making binary trading illegal. Israel is one of the countries that vetoed binary options trading in general and traders don’t have an opportunity to trade with regulated brokers as there aren’t any.
Such conditions increased the number of unregulated and scam brokers that are offering binary trading services with suspicious terms and conditions and left traders completely unprotected. Israeli Securities Authority first forbids offering binary trading services to Israeli citizens completely, and now is working on passing a law that will prevent Israeli-based companies from offering these services to international traders as well.
Future of Depositing in Binary Options
MasterCard is only the second big financial company that limited depositing with unregulated binary brokers, but it remains unknown whether or not other companies will follow their steps or will they simply be replaced with competitors.