On the 5th of August 2014 the Department for Culture Media and Sport wrote a letter to “Jenny Williams”, the Comissioner and Chief Executive of the Gambling Commission stating that “Government has been looking at the issue of the supervision of binary options” and that “The enactment of the Gambling (Licensing and Advertising) Act 2014 means that some operators offering binary options from overseas jurisdictions will require operating licences from the Gambling Commission when the Act comes into force later this year.”
The UK Gambling Comission (http://www.gamblingcommission.gov.uk/) then posted an article on their website in the “gambling sectors” and “betting” category, explaining to the public what exactly binary options are and stating that the UKGC only regulate binary options if the broker has “remote gambling equipment located in Great Britain”. They also wrote in a letter on march of 2015 that “Separately, the government is providing draft secondary legislation provisions which will provide that certain binary options are regulated and supervised by the FCA, rather than the Gambling Commission, and invites comments in relation to the proposed legislative amendments to the RAO.”
What has happened since then?
Nothing… No word.
In all of 2016 the UKGC has not uttered a word about binary options.
The UK Gambling Comission also posted an official “Binary options scam warning” on their website on the 13 of April 2015, stating that the responsibility of binary options regulation in the UK falls under the jurisdiction of the “FCA“, makes us ask why people are still asking is binary options gambling or not? Apparently the UK Gambling Comission thinks binary options is not gambling, but still a kind of “betting” as they have categorised the post about binaries on their website under “betting”. Are you as confused as we are?
You can view the original post in this link.
Binary options scam warning
Consumers are being warned to beware of scams masquerading as binary options trading.
Anyone considering taking part in binary options betting is being advised to take the following advice:
- Check you are dealing with a licensed operator: Binary options operators based in Great Britain currently need to be licensed by the Gambling Commission and to display this on their websites. Operators in reputable jurisdictions will have their own domestic regulators, most of whom will have similar online registers.
- If you have any doubts about whether an operator is licensed, do not use them: An unlicensed operator is likely to be acting illegally. They will not abide by any code of conduct and have no incentive to deal fairly with you. Unlicensed operators are likely to use false names, addresses and contact numbers – they can disappear with your money and without a trace, making recovery impossible.
- Remember that if you lose money the Commission cannot recover it for you or compensate you.
- If you think you have lost money after using an illegal, unlicensed operator, it is recommended that you contact Action Fraud, either through their website or on 0300 123 2040.
Read the Commission’s full warning on binary options trading.
Notes to editors
- The Gambling Commission (the Commission) regulates gambling in the public interest alongside its co-regulators local licensing authorities. It does so by keeping crime out of gambling, by ensuring that gambling is conducted fairly and openly, and by protecting children and vulnerable people from being harmed or exploited by gambling. Subject to these overriding public protection objectives, as regulator of the National Lottery the Commission monitors and challenges Camelot to raise the maximum amount for good causes. The Commission also provides independent advice to government on gambling in Britain.
- The Commission and local licensing authorities are responsible for licensing and regulating all gambling in Great Britain other than spread betting, which is the responsibility of the Financial Conduct Authority (FCA).
- See the Terms & Conditions section of our website for information on legal advice.
- Journalists can contact our press office on 0121 230 6700 or email: firstname.lastname@example.org