Binary options regulation theuk
Therefore, instead of issuing further warnings or a futile attempt to ban binary options , the institution will monitor the industry. The new role of the FCA begins on the 3 rd of January , but until then, the Gambling Commission is still in charge.
Complaints on all binary options bets until the 2 nd of January should still be submitted to the Gambling Commission. Starting on the 3 rd of January, though, the FCA will be officially in charge of binary options regulation. All binary options firms will need authorization from the FCA before they can operate, and be supervised by the FCA thereafter. Effectively, the binary options regulation by the FCA is bound to have a positive effect on the industry, which people seem reluctant to avoid.
Stay up to date with the financial markets everywhere you go. Comments 0 comment s Click here to cancel reply. Get the most recent news at your inbox Stay up to date with the financial markets everywhere you go. Sign up for updates. View ICO See whitepaper. ZCoin Analysis - What a reversal! Feathercoin Forecast - 0. There are some binary firms operating with gambling licenses provided by the UK GC. On the other hand, we see FCA regulated forex brokers that offer binary options as a side product.
The way both these licenses are obtained are quite different. Although the FCA does not regulate digital options, this has not stopped it from publishing warnings about various brokers. The watchdog issues such warnings in the general interests of the public at regular intervals and calls out the firms in its reports. In doing so, the regulator has taken a proactive role in ensuring only legitimate businesses are able to offer their services to UK residents. Therefore, firms that offer such products mainly banks are expected to provide full reporting and transparency for their clients.
If any of the binary options contracts are also put under this scheme, it could mean most unregulated binary brokers will have to obtain FCA licenses, especially if they offer the specific contracts to the UK investors. Such brokers aim to bring the best practices and transparency into the business. This puts the licensed companies at an advantage due to the strict guidelines and regulations enforced by the FCA. At present, binary options are subject to regulation by the UK Gambling Commission.
However, current developments on the legislative side are expected to bring about some changes in the near future. The FCA is contemplating treating digital options as a financial product. Given the increase in popularity of binary options, the FCA is rumoured to make a decision on including some types of binary options contracts under its umbrella.
For the trader, it should suffice to know the ongoing changes will only mean the landscape will shift toward a more transparent binary options industry. Very informative article, thanks for clearing out binary options regulations in the UK, hopefully FCA will finally regulate binary brokers and all the scammers will be forced to shut down. They will probably need to agree new deals. Earlier, brokerages could obtain FCA licenses, which in turn allowed them to transfer their financial services into Europe.
However, with the Brexit referendum, this advantage is likely to be taken away. Therefore, brokerages with FCA licenses will still need to apply for EU licenses to offer their services to the region. This means UK-based investors will have an institution that will continue to look after their interests and promote and maintain the integrity of the markets. Skip to main content. Regulation of binary options in the UK The binary product in the UK can be viewed as both a financial instrument and gambling.