Israel is on the verge of outlawing binary options and the ability to offer binary options anywhere in the world. The Israeli government has already passed legislation that prohibits its own citizens from trading binary options. Governments and regulators from all over the world have been pressing Israel on such dramatic action. This is due to the massive amount of fraud committed by binary options brokers in Israel. How did this industry deteriorate so fast? Many of the offending “brands” were powered by one company SpotOption.
SpotOption was right alongside the offending brokers
SpotOption which is headquartered in Israel but regulated in Cyprus has over 300 brokers operating under its domain. The company positions itself as a technology company but really is the risk provider for marketing brands. These brokers will enter profit-sharing deals while they use SpotOption trading software and CRM. One of these brokers that were using the company’s platform was the now defunct Banc De Binary. Banc De Binary had used high-pressure sales tactics and aggressive marketing in their growth and basically ignored regulators from around the world. Banc de Binary had received the largest fine of any binary options broker in the United States for targeting US citizens.
SpotOption could have stopped geo-targeting of prohibited countries
The software provider could have easily stopped its brands from targeting countries like the United States but it chose to ignore and thumb their nose at international law. SpotOption also ignored all the cries from international regulators on the fraudulent and illegal practices of many of its brands and their employees.
SpotOption leaves an industry in ruins and itself to blame
As a result, we now have an industry with a destroyed reputation and all-out war against its brokers from regulators. The brokers are getting what they deserve but a company like this should have and could have done more to stop the rampage of fraud committed by its brands.