24option Was Banned: Binary Options Industry Is Dying Out

In recent years, as binary options frauds become more frequent worldwide, relevant regulatory agencies in many countries have issued warnings or bans on binary options trading. 24option, as one of the leading and longest-running binary options brokers, also failed to escape the fate of being banned.

According to Finance Magnates, CONSOB, the Italian securities regulator, ordered 24option to cease operations in the country. 24option was banned for not being able to comply with specific regulations. The company had also violated the EU directive that mandates negative account protection, ensuring that customers cant lose more than their trading stake.

Finance Magnates news report about 24option

24option was operated via CySEC licensed Rodeler Limited. We can see from the website of Rodeler LTD that they have protocols put in for clients who wish to complain.

Complaints procedures for clients on Rodelers website

The service appears to be a solid guarantee for investors and had won the trust of many, but ironically, 24option was fined by the Cyprus Securities and Exchange Commission (CySEC) to the tune of 35,000 Euros for releasing false advertisements and failing to keep proper records of investor complaints. Apart for that, the Ontario Securities Commission(OSC) and the French AMF have added 24option to their warning lists.

OSC added 24option into warning list

Although having been fined and warned by numerous regulators, 24option remained very active. By taking advantages of the Internet, it posted false advertisements and used slogans such as “convenient and fast returns” to attract investors to participate in binary options trading until it received a red card from CONSOB. CONSOB has been among the most vigilant and strict regulators in Europe when it comes to dealing with leveraged trading. Under the pressure of CONSOB, the so-called biggest broker in binary options trading eventually fell down.

Binary options trading is doomed to be out of the market because it is a deceptive type of trading similar to gambling. According to an annual enforcement action report released by the UK's Financial Conduct Authority (FCA), during the past year, FCA has received 16,600 reports of unauthorized operating activities in the UK, a 25% increase year-on-year. The report stated that many companies trying to attract UK residents are binary options brokers. Under the vigorous publicity and heavy crackdown of various regulators, more people are aware of frauds and proactively report these issues, while more and more binary options brokers have been banned.