A little too late: Europe’s lax policy on binary options hampers US enforcement actions

“This lax policy, which has allowed binary options companies to proliferate in European jurisdictions like Cyprus, Malta, Bulgaria and even the UK, is now making it hard to take enforcement action against binary options entities that committed violations in the past” reports These measures, which appear harsh with regard to binary options, however, might have come a little too late, given the years of lax attitude of the authorities in Europe towards binary options brokers and the call centres and other marketing affiliates of this type of entities.The Zilmil Defendants acted as third-party ‘affiliate marketers’ who drove internet traffic to the Citrades Defendants by fraudulently soliciting customers to sign up for or purchase binary options autotrading systems.Earlier this week, the CFTC faced severe opposition to the evidence that it has produced with regard to the marketing affiliates of the defendant binary options brokers.There has been a lot of industry havoc about the new rules that the European Securities and Markets Authority (ESMA) is about to introduce to the offering of CFDs and binary options to retail investors.

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