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!
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Interesting Daivid, please keep us posted. From CYSEC announcements page.
Persons who do not notify the Commission, in writing, of their intention to submit an
application for a CIF license (as provided in point 1 above) are obliged to stop offering
investment services relating to binary options, at the soonest possible and at the latest
within 30 days from the date of this announcement. May 4, 2012
Sounds to me like Binaries are growing up.
Does this simply mean that individuals who invest in Binaries must take more precaution and confirm that the Broker they use have obtained a CIF License?
How will this new BO regulation affect Americans? Will this open up trading for Americans?
I thought 24Option are regulated in Anguilla though? So they won’t be affected. Not in their own operation anyway. If only I understood Greek I could comment further but I don’t think it will be as big a deal as we all hope.
I bet this means the IRS is on to this and wants your money
yes what happes to usa clients, that is the best question. We already know how bad the dodd/frank bill ruined spot fx for usa clients. Something tell me we will get lower payouts or some kind of shaft now.
@tommbstone….I agree with you about dodd/frank, I wasn’t crazy about the idea either, however, I don’t feel we will be getting the shaft. What I would like to see happen is that if there is 70% payout we should not lose all of our money if we are otm; we should be able to recoup 30%, but in my humble opinion I do not forsee lower payouts….I believe the payouts will remain the same.
what is up with the 15 min. trades are they now gone forever?
As a newbie I welcome the Binary Options Regulation as a step in the right direction in giving us more confidence in the broker and a bit more sence of esurity. It will I’m sure get rid of the cowboys in the industry.
Good to know, keep us posted
On a second thought, this applies to brokers based only in Cyprus. Is 24Op & BDB in Cyprus?