According to Prof. Shmuel Hauser, the Head of the Israeli Securities Authority (ISA), who was speaking at the Globes Capital Markets conference, binary options are like the mining industry of blood diamonds in Africa.
Hauser boldly highlighted how “Binary options in my view are like those blood diamonds, in that the mining process in Africa has exploited and harmed so many people. We must expand our enforcement capabilities in order to eliminate binary options trading. The common belief of tens of countries around the globe is that the Israeli authorities are turning a blind eye towards binary options and are reluctant to solve the problem.”
He also stated that the procedure which is motion against binary options brokers will be progressing very soon. The Israeli parliament’s State Control Committee seems to be working on a new law that will attempt to ban the marketing of binary options by Israeli providers to any person that is a foreign citizen.
An inquiry about the current status of the law was sent to the Israeli Ministry of Justice which is overseeing the legislative procedure, but they have declined to comment on any questions at this time.
The Israeli Securities Authority has started the battle against binary options industry approximately a year ago. They started with banning the possibility of offering binary options products to Israeli citizens in March last year. Last year, at the same conference mentioned in the introduction, Hauser commented on the binary industry in a rather extreme way by saying that it ‘’burns the money of orphans, widows, and pensioners”.
Considering the strength of the move against the binary options industry in Israel, it is not surprising that it has taken its toll on tech providers and brokers over the last year. In the last half a year alone, there were several big brokerages and call centers that were closed including Banc De Binary and dozens of unregulated binary options providers. Anyoption and 24Options have completely closed down their call centers due to this uphill battle.
It is clear that this war is nowhere near its end. We just need to wait and see how it all resolves.