Congratulations to Canada, which has now become the latest country to adopt regulations that are designed to cripple fraudulent online binary options schemes.
The Canadian Securities Administrators (CSA) has announced the implementation of Multilateral Instrument 91-102 Prohibition of Binary Options, which makes it illegal to advertise, offer, sell, or otherwise trade binary options shorter than 30 days with any individual. The decision was the outgrowth of the CSA’s Binary Options Task Force, which was formed last year to develop strategies to address this form of fraud.
“Binary options are the leading type of investment fraud facing Canadians today, and the impact of this kind of scam on individuals is staggering,” said Louis Morisset, Chairman of the CSA and President and Chief Executive Officer of Quebec’s Autorité des marchés financiers. “This ban positions the CSA among the world leaders in fighting back against binary options fraud and represents an important step in protecting Canadians. It conveys a clear message that these products are unsuitable for individuals because of their risky characteristics and that their trading is illegal.”
Although no one in Canada is licensed to offer binary options, the ban will serve to educate investors and enable them to identify online scams based offshore. Moreover, the CSA is coordinating with credit card companies to prevent fraudulent brokerages from using them to bilk Canadian citizens.
The CSA is the council of the securities regulators of Canada’s provinces and territories, and is charged with the responsibility of coordinating and harmonizing regulation for Canadian capital markets.
Thank you Canada for your initiative.