SFC – Hong Kong Securities & Futures Commission VS Icoption
The SFC – Hong Kong Securities & Futures Commission has added a new binary options brokerage to their alert list, as can be seen here. The name of the brokerage that made the alert list is “Icoption”. Icoption is apparently using a bank account in Hong Kong in the name of “Hong Fong Trade Limited” for settlement. From our understanding there are currently no binary options brokers licensed to trade in China or in all of Asia.
Instead of Updating Alert Lists Once in a While, Asian Regulators Should Actually Regulate
Just like many other local regulators who are not really doing their jobs well when it comes to binary options, the Hong Kong SFC seems to be uninterested in actually licensing and regulating any brokers. Instead they just keep a list of binary options brokers on their alert list. We are not certain if any binary brokers have actually submitted an application to be licensed by the SFC, we do know however that submitting a license application to the SFC can cost up to $129,730 per regulated activity, when applying to get a licensed of corporation (Type 3 regulated activity) for example. Most, if not all brokers, can’t handle that kind of a fee just for applying.
These facts mean that brokers in the industry can not get a SFC Hong Kong license and are added to the alert list if even one person from China or Hong Kong signs up on the brokers website, or if the brokerage decides to open a bank account in Hong Kong for settlement.
Screenshot from SFC Website