ESMA Lifts Ban on Binary Options Trading

’s securities watchdog lifts the temporary ban, allowing member states to form their own independent .

Are we at the start of a new era for in ? The European Securities and Markets Authority () has announced on July 1st that it will not renew the -wide ban that it has placed on platforms which has expired on the same day. The ban, placed by in July , prohibited platforms from , distributing and selling to retail investors in all European countries.

The original ban was set in place in order to allow the various European countries to devise a policy and legal boundaries to regulate . In the year that passed since the ban was placed, many of the member states have published permanent restrictions on trading of , which were, in some instances, stricter than the temporary ban placed by .

France’s Financial Markets Authorities () has decided to place a national ban on binary options to retail investors. The apply to any trader or member states’ citizens trading from . This move was not too surprising, as the deemed binary options trading as ‘financially risky’ in March and presented a ban on the sale of binary options in April.

Securities and Markets Authority
Lifts Ban on Binary Options

The ’s Financial Conduct Authority (FCA), chose a slightly more lenient approach, confirming that it will place restrictions on the sale, distribution, and of binary options trading platforms, based on an individual review of each of the platforms and products. While it will certainly prolong the process of trading, it leaves an opening for legitimate trading options to operate safely in the .

While the actions of the some of the bigger national actors reflect the prejudice and suspicion still prevalent in many European capitals towards binary options trading platforms, the lift of the blanket-ban gives European investors a glimmer of hope. It allows more progressive countries to open binary options trading to their citizens and allow them to join the rest of the world. Unless these necessary changes will be made, the old continent will continue trailing behind the American and Asian markets, due in great part, to their antiquated laws and .  

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