Banc De Binary has retracted their press release of January 25, 2012 calling it “inaccurate”. In the earlier press release they announced that they were in negotiations with the CFTC in an effort to gain US regulation. They indicated that they would refuse to accept new US traders during the course of the negotiations as per the request of the CFTC.
Banc De Binary has now posted the following retraction on the bottom of its home page:
“BDB’s representatives issued a press release on January 25, 2013 regarding its operations in the United States. BDB retracts the press release. The release was inaccurate in several respects. BDB has been advised by the CFTC that it is not permitted to market binary options to United States persons. Thus, BDB will not take orders from United States persons. BDB intends to abide by all laws regulations and hopes to obtain permission to do business in the United States. Until then, BDB will not be permitted to offer its products to United States customers. Please check back on our website periodically for updates. Thank you for your patience.”
According to the above statement Banc De Binary and the CFTC are NOT in negotiations to obtain US Binary Options regulation. The CFTC instructed Banc De Binary that it was not permitted to market Binary Options to US traders and Banc De Binary has decided to adhere to the CFTC demands with the hopes of one day gaining permission to solicit US customers.
Future of Binary Options Trading in the US
NADEX is the only CFTC licensed Binary Options broker in the US. They are permitted by US law through the CFTC to market Binary Options products to US traders. Although listed as a Wall Street based company, Banc De Binary, like most Binary Options brokers actually operate outside of the United States. Because Binary Options is relatively new and there weren’t specific laws in the US geared towards it, many foreign brokers have marketed to US customers despite the lack of regulation. Recently the surge of popularity of Binary Options worldwide coupled with efforts to obtain regulation throughout Europe through CySEC has raised the awareness of the CFTC.
The CFTC had already taken a stand against one Binary Options broker for soliciting US customers. Now that they have moved against Banc De Binary, which is one of the larger brokers, most other brokers will probably fall in line and abide by the CFTC ruling by refusing to accept US customers.
Since the industry in just now beginning to be regulated in Europe it is probably only a matter of time before the US follows suit. Until then it will be interesting to see which brokers follow the Banc De Binary lead by refusing to accept US customers. Of course we will continue to provide any updates on this situation as they become available.