It is not news that the Knesset Reforms Committee will be banning binary options and marketing practices associated with it as the latest draft of the law is soon to be accepted fully. What is surprising is that it will also encompass binary options technology providers also and they are going to have to either change their business model or close operations in Israel completely.
According to the latest updates regarding the binary options law in Israel, it has apparently encompassed not only binary options providers and accompanying marketing services but also many services that technology providers are offering. Some of these are pricing and clearing of binary options, operating service centers, developing and managing the operating computer systems etc.
At the Knesset Reforms Committee discussion today the Israel Securities Authority (ISA) commented: “Our position is that binary options are like gambling. This is the position and therefore there should be no exceptions or changes. We don’t want this to be managed from Israel. Developing and selling software is OK. In practice, here is no separation between the technology companies and the brokers.”
Even the police in Israel found it needed to be commented on: “We are taking steps with Google, Apple, Facebook and the credit card companies. This started with players transferring from online gambling to binary options. The problem is that the technology companies merge into the brokers, they sell the software, the clearing, everything. You can literally pick up the phone and change the outcome of the trade.”
“The way we see it, software companies that develop the trading platforms are actually a partner of the brokers. Whoever supplies a platform for fraudulent companies is an accomplice to their crimes. Whoever is committing an offence which is partly done in Israel, is committing an offence. Gambling is very similar. This is why the ban is nothing new for Israeli law. The mere sale of a product that has elements of fraud is an offence,” said The Justice Department.