It seems that Israel was not wasting time on the new law that the cabinet announced. The ban on binary options law was approved on Sunday and it targets the sale of binary options to clients outside of Israel without having the necessary license from the country of residence.
The proposed and now accepted law was drawn up by several government offices and the Israel Securities Authority (ISA). The law proposal was then submitted by the Finance Minister Moshe Kahlon.
The law is now being handed to parliament who is going to deal with it in a very speedy fashion and it will have priority over other laws that are yet to be established.
The breaking of this very important law will result in serious consequences for the trading firm and individual that is found in violation. As it now stands, the culprit could end in prison for up to two years. If by any chance, it is proven that the individual or a firm in question were involved in money laundering, then that sentence could rise to up to 10 years in prison.
It is not only troublesome that the marketers of binary options who are choosing to scam people are causing severe and possibly irreparable financial and emotional damage to people around the world – but that it fuels antisemitism. ISA chairman Shmuel Hauser said that binary options have been very damaging towards Jews and Israelis.
This is not Israel’s first attempt in waging a war against binary options. Last year Israel banned all trades on binary options within Israel, which made it the first country ever to make that move.
If we recall, an owner of a certain Israeli binary options company was arrested for fraud and extortion after a complaint was made against him. He had damaged his client for over $500,000 and his arrest was the first one since Israel started to fight back.
Obviously, there are hundreds of binary options firm in Israel which is considered to be a Technology hub. This number alone makes it plausible to speculate that there must be a lot more of clients who were scammed that just haven’t decided to come forward with their statements yet.