This June it finally looks as if we are going to get the one thing that we’ve all been waiting for, regulated binary options. The Cyprus Securities and Exchange Commission is getting set to release to first ever regulation for binary options which means some changes will be taking place in the industry.
This is a quote from the CYSEC announcements page.
So what exactly is regulation, and what will it do for this industry? Regulation put simply, is the monitoring and control of companies in an industry to ensure they are following rules which are put into place to ensure things don’t get out of hand. As most of us have already seen, Forex went through a similar regulatory process which helps keep out the bad apples and keeps traders and investors feeling confident and safe about their funds.
So far the growth in this industry has been incredible, and soon once regulations are granted I believe we will see yet another incredible spike in new traders. In an industry such as this which is in such a serious growth cycle, this can only mean bigger and better things for us. We may see things such as platform upgrades and notice changes such as things becoming more streamlined, and support services improving.
Now, one of the major intitial questions I had was if the payouts were going to change with these new regulations. However I was told so far that there would be no changes to the rates, so we are still looking to stay around 70-90% payouts.
The second major question I had was, who will be the first to get the regulation? It appears Banc De Binary is leading the charge, then followed by 24 Option and Any Option. The rest of the companies are I’m sure still up in the air, so we will just have to wait and see what happens to them once this goes through.
I will keep everyone updated when I find out more information as soon as I have it. I just wanted to give everyone a heads up though!