The Israeli Regulator (ISA) Has Fined a Local Binary Options Broker for Offering Binary Options to Israelis Without Having a License and Despite the Current Ban
The fine was issued by the ISA against: D.G.I. Media Ltd, operating from website www.dgimarket.com.
As we have reported previously, the binary options ban reached Israel and the authorities are clamping down on unregulated brokers, also targeting those who are marketing products abroad. This news was reported by FinanceMagnates and LeapRate earlier today, and apparently the fine is half a million New Israeli Shekels, about $130,000 – for continuing to market binary options to local Israeli investors. This comes just a few days after the United States SEC fined an Israeli binary options broker $200k and furthermore charged the broker to forfeit $1.5 million.
Don’t Ban – Just Regulate!
Israel has always been a security state with an iron fist against perpetrators and is always mirroring what “big brother” the USA does against perpetrators. But, and this is a big issue, Israel has banned binary options all-together instead of trying to regulate the market. This is a big mistake, the USA has not banned binary options all-together, just like many other EU countries and western countries such as Australia.
The smarter countries task their regulators with building a stronger framework and regulating the vast market, instead of banning binary options. In Australia for example, strong regulation and investing in managing the brokers with a regulation plan has brought us reputable and far from scammy brokers such as HighLow and VantageFX. In the USA the strongly regulated market, which is regulated by the SEC and CFTC has brought us some of the most brilliant and reputable exchanges such as NADEX and Cantor. In Europe and in Central America the FSB and CySEC are also doing a great job with regulation and some really good brokers such as StockPair have risen to the top.
What Should Israel be Doing?
Instead of banning binary options and hunting down perpetrators, Israel should be invest a little in actually regulating the market and bring us some reputable and brilliant brokers and exchanges like the USA, Australia and Europe have done.