Binary Trading Scam
The binary trading scam has gained two new enemies: the UK and Canada. These two nations are the latest to take the millions of dollars leaving their shores through unregulated options companies seriously. Both countries have publicly spoken out against the binary trading scam as a whole. What does this mean for binary options brokers?
The UK Implicates Scotland
In the United Kingdom, at least 30 shell companies were found to have roots in Scotland. In reality, they were fraudulent Israeli binary options brokers, who made their money pretending to be from the UK, accents and all. Their scam worked quite well, as traders thought they were doing business with countrymen who had to obey EU regulators. Professor Shmuel Hauser of the Israel Securities Authority advocates a groundbreaking measure – granting governmental powers the ability to cross national borders to deal with imposter binary options brokers.
Initial investigations made by journalists at The Scottish Herald uncovered the shell companies and tipped off British authorities about the scam. Scotland Yard, the police in the UK, now believe that binary options is one of the largest scams taking place in the country. The investigation uncovered more than 130 companies registered in the UK, completely unregulated. This to be only the start of a more robust investigation.
Nova Scotia Joins the Fight
Like the UK the province of Nova Scotia in Canada has taken serious action against fraudulent binary options brokers. Unlike the UK, however, the response of the country is more pronounced and sparked by a smaller initial concern, with a few Nova Scotians reporting that there were bad eggs on Facebook, resulting in the government investigating the matter.
David Harrison, the chairman of the Nova Scotia Securities Commission, took immediate action warning citizens against doing business with investments that come from “Magnum Options” or “Hampshire Capital Ventures Ltd.” Nova Scotia continues to purge the unregulated binary options market (read: fraudsters) from its shores.