French and UK Regulators Warn against Binary Options Providers

Option Binaire AMFThe Autorite des Marches Financiers (AMF), the online trading industry regulator in France, has issued a warning against a website called Option Binaraire AMF, which promotes Cypriot binary options brokers. According to the regulator, the website is misusing its logo and name.

Option Binaire AMF, which is accessible at www.optionbinaireamf.com, supplies comparison and information services related to Cypriot binary options brokers, who are regulated by a watchdog of the Cypriot securities industry called CySEC. The website also focuses on promoting these brokers’ services.

The homepage of optionbinaireamf.com presents a large logo of the French regulator and includes its name in its own name. AMF does not like this as it feels that those visiting the website may feel that the regulator supports the website contents and the Cypriot brokers it promotes. The regulator has therefore urged the public to avoid the website and has stated firmly that the website is illegally using its name and logo, which may mislead the public. The AMF makes it a point to warn people about various online trading risks, including risks associated with binary options trading. The regulator recently updated its blacklist, which now contains the names of 189 brokers who operate in France. The regulator also organized a Mystery Shopping Campaign to enhance public awareness of online trading dangers.

Through this campaign, it showed how difficult it is for customers to withdraw funds from brokers, most of whom were Cypriot.

In a separate case, the UK Gambling Commission (UKGC) has warned consumers about binary options scams. The regulator has urged all binary options bettors to first research the market, stating that consumers should first find out if they are dealing with UK-licensed operators, who have clearly mentioned their licensing information on their websites.

The UKGC urges consumers to avoid using the services of unlicensed companies as they could be operating illegally and not complying with regulations. The regulator says that it can do nothing to help consumers retrieve any funds they may lose while dealing with unlicensed binary options brokers.

In the UK, the UKGC oversees binary options, but the government is finally considering handing over binary options to the Financial Conduct Authority (FCA). The UKGC has issued its warning as the country’s laws permit offshore providers of binary options services to operate in the UK without any regulator monitoring them. The UK government is currently considering the importance of placing binary options into the financial services category.