Banc de Binary Closing Operations - January 2017
Regulatory changes made it difficult for the company to continue to operate. The company issued a statement that said customers are kindly requested to withdraw the existing credit balance in their account
The binary options firm, Banc De Binary, decided to close its operations. This is an unusual step for a company that operates in 100 countries - and annual sales revenues in 2014 of $ 100 million (according to a BDI).
A communiqué issued for all customers stated: "We would like to inform you that Banc De Binary has decided to stop working in your area, due to regulatory constraints. In case a balance remaining, please make a withdrawal using in your account and we will credit it to the full amount.
"We are fully committed to all those entitled to return the money. Thank you for understanding and for that you have chosen to work with us. If the future we will be in a position to allow us to offer services in your area, we'd love to have you back to our customers."
Regulatory changes, and worldwide regulatory intervention, imposed quite a bit of trouble controlling shareholders of the company, which was a former sponsor of the soccer team Liverpool, and operates in approximately 100 countries.
The company was fined $ 11 million by the US Federal Court, without the company pleaded guilty, that the American customers received domestic illegally. Intervention of the Israel Securities Authority investigation, assisted the Federal Court to issue an individual against a fine pine controlling shareholder Saturday. Saturday is required to personally pay $ 9 million, in respect of the fact that the activities of the company allows customers in the US illegally trade binary options, while local authorities did not give their approval to manage the arena.
The order, issued in February 2016, stated that on Saturday personally pay compensation of 7.1 million customers affected, in addition to a fine of $ 2 million to the state. The order also prohibited the operations of the arena in the US. The regulator also imposed a penalty on Cyprus company a fine of 350 thousand euros in January 2016. It can be assumed that the various articles in economic journals worldwide, non praise the industry, to say the least, led the controlling shareholders decide the cessation of operations.
Binary options are gambling device, which allows customers in the exchanges lose or gain a large amount, depending on a short-term change in the prices of financial assets. For example, an investor bets that at 17:00 Google's share price will be 719 dollars, as currently is trading at 718. If the price closes above 719 dollars at the usual time - the investor earned 70% on his investment, and if it was under - he lost all his money.
This industry was exposed last year in several newspaper articles that described how successful marketers of companies "sting" and spend money fraudulently innocent people, mostly abroad.