Banc de Binary Facing Resistance From Industry Watchdogs in Australia and New Zealand

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Banc de Binary Facing Resistance From Industry Watchdogs in Australia and New Zealand

By Adam Teen | Wednesday, January 20th, 2020

The commission urged Australian retail traders to avoid the company.

Now, another watchdog, the Financial Authority based in Auckland, New Zealand has issued very similar warnings on its website. They warn the public about using Banc de Binary as they have no authorisation to operate in New Zealand.

Both warnings from the financial authorities come as a response to the influx of Cyprus based binary brokers targeting residents in Australia and New Zealand. The watchdogs have failed to create a needed framework for companies to become easily regulated.

Despite that, many brokers decided to provide their services to residents of both countries solely on the basis of being regulated elsewhere, usually holding a trading licence issued by the Cyprus Securities and Exchange Commission.

Although we have seen CySEC being more proactive recently in enforcing their rules this does not mean that they will look after clients from outside its jurisdiction.

At present, the Australian Securities and Investments Commission, as well as, New Zealand’s Financial Authority do not provide a separate licence for binary options brokers. In order for them to become regulated in this part of the world, they would require to have a standard forex broker licence.

New Zealand FMA Joins ASIC in Warning against Banc De Binary

Cyprus headquartered Banc de Binary is facing resistance from regulators in Australia and New Zealand.

Several months after the Australian Securities and Investments Commission (ASIC) announced that Banc de Binary is an unauthorized service provider and that it recommends retail traders in Australia to avoid it, another watchdog from the region has issued its own, similar warning.

The Financial Markets Authority headquartered in Auckland, New Zealand has issued an official warning on its website, warning the public that Banc de Binary is not authorized to provide its services in the country.

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A number of Cyprus based companies are already targeting Australian and New Zealand residents with unsolicited offers for binary options trading and the watchdogs have not created a framework for the companies to becoming regulated easily.

With the vast number of brokers that are providing their services in both countries outside of the regulatory framework, customers have been convinced to deposit only on the basis of a Cyprus Securities and Exchange Commission (CySEC) license.

In the past months, we have seen the first signs of CySEC becoming somewhat more aggressive about enforcing the rules, however that doesn’t mean that the regulator is looking after the interests of clients outside of its jurisdiction.

In the case of New Zealand’s FMA and ASIC from the land down under, there is no separate license for binary options providers. This means that in order for brokers to be providing a regulated service, those have to be regulated just like forex brokers are.

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