From January binary options in the United Kingdom will be officially considered a financial service and no longer a branch of gambling.
The FCA (Financial Conduct Authority) namely the financial regulation body in the United Kingdom and the UK Gambling Commission, have reviewed the future regulation of binary options in the United Kingdom.
Actually binary options given they are connected to “betting”, are under the direct supervision of the Gambling Commission.
This situation is destined to change on the 3rd of January 2018, the date on which the FCA will obtain full management and regulation control over companies that undertake binary options business in the United Kingdom.
Binary options companies will have nothing more to do with the Gambling Commission.
The change was implemented to protect those who invest in binary options, until now excluded from the protection of the law for financial services. In practice one will stop considering the investor a gambler.
The FCA has highlighted that the change for those who invest in binary options will be that from now on, if the broker fail’s to pay, one will have access to the Financial Services Compensation Scheme (FSCS), the compensation fund for financial services.
It provides compensation if the broker is unable to pay or if they default. Although if the client has suffered losses whilst trading there are no provisions.
If the losses are the result of fraudulent activity, you will be left with no alternative than to turn to a competent lawyer.
Binary Options and the European Union
The European Union already treats binary options as an investment product, which has meant that the United Kingdom has had to recognise the businesses as authorized to operate in the European economic space.
Thus, although the FCA will begin to recognise binary options as a financial product and not a wager, from January businesses that carry out binary options trading and that operate as financial service providers in other European countries, can already operate in the United Kingdom as financial service providers and will continue to do this until Brexit is final.
At that point, there are bound to be new rules written.
It should be noted that whilst in Israel binary options has been made completely illegal, in England it was instead decided that their regulation should be focused. From January the two strategies will have been implemented, one will be able to evaluate which of the two methods will bring in the best results.
The world of Forex is in itself a wager, but when you wager with an honest broker it is not already foretold that you will lose.
If you come across dishonest brokers do not hesitate to contact our expert lawyers at Boccadutri International Law Firm. We will inform you if there is a chance that you will be able to recover your money.
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