2016 has been a difficult year for the binary options industry. Many of the problems are self-inflicted and caused by the binary options brokers themselves. Constant abuses by these brokers have now led to a backlash by regulators and authorities from around the globe.
One of the most common forms of abuse has been a misrepresentation of regulatory status. Most recently FINMA the Swiss regulator has gone after, Banking Option a company that claims Swiss regulation even though Swiss regulations do not cover binary options as a product. The past year has also seen Canadian regulators taking up the battle against binary options brokers that have been targeting their citizens. Some of these include Ivory Option and Magnum Options.
Another issue that has been plaguing the binary options industry has been the companies misrepresenting the office location they operate out of. Many of these binary options brokers were in Israel even though Israeli regulations do not permit binary options to its own citizens. The problem has gotten so bad that even the Prime Minister has acknowledged that the binary options industry has damaged the reputation of the country. Israel is now taking a more proactive approach and is working in conjunction with other regulatory authorities to crack down on violators. Israel is also looking to institute a ban on companies to offer binary options to anywhere else in the world.
Binary Options brokers have been very active when it comes to sports sponsorships. Especially football sponsorships in the Premier League and other major European Leagues. EZ Trader signed a deal last September with AS Roma and ZoomTrader signed a sponsorship deal with Bologna FC. This trend might also be changing as we have seen recently with the canceling of the Banc De Binary and Southampton FC deal. At some point, the toxic reputation of many of these brokers and the industry will be too much for these sponsorship deals to last.
The binary options industry has been so abusive in its practices that many countries have elected to either ban the marketing of these products or ban the products altogether. Most recently the Netherlands, France, Belgium, and Canada have taken steps in this direction and have been cracking down on the abusing brokers. The situation for binary options brokers could get much worse as regulators look to deal with the industry on a global scale.