Canadian securities regulator the British Columbia Securities Commission (BCSC) seems to be continuing its streak of serious warnings against brokers who aren’t regulated. They are also trying to bring down other scams related to this industry.
It seems that British Columbia Securities Commission has added another broker on their blacklist (called the Investment Caution List) – the unregulated binary options broker Boss Capital which is being owned by Melnic Group Ltd. This broker has been operating from a website with the address bosscapital.com.
According to the what the BCSC had to say about the whole deal, Boss Capital has claimed to be based out of Sofia in Bulgaria and their main business direction was offering a binary options trading platform to retail traders around the world.
It seems that a Canadian resident was able to open an account with Boss Capital which made them appear under the watchful eye of the Canadian Regulator. This is not the first time that Boss Capital has been under scrutiny and several warnings against them have been issued previously.
Boss Capital was also given a strike not only by the Canadian regulator but also by an Italian watchdog CONSOB. Boss Capital is not registered or licensed to trade, exchange or advise on any type of financial trading anywhere in Canada. BCSC has urged the Canadian residents to be very cautious when dealing with companies that are not registered in Canada.
When taking into account all the recent events in Canada, it seems that the Canadian authorities have begun being a lot more strict than that was the case in the past. After the death of one of Canadian residents after losing his entire savings when doing business with one of the unregulated binary options firms, Canada has obviously decided to tackle this problem while they can still keep track of it.
It also appears that the fight against binary options trading has been spreading worldwide as more and more countries have already banned binary options trading or are now strongly considering it. The main argument seems to be the fact that binary options are a very complicated financial option which is not suitable for any trader who does not have enough experience and knowledge to understand the real risks of trading binary options.
There are, of course, also those who claim that binary options are not the issue per se, the problems are the firms who are not regulated and who focus on scam products.