Banc De Binary CFTC Negotiations – UPDATE
Banc De Binary has announced that they are retracting their press release from January 25, 2012. They are not currently in negotiations with the CFTC with regards to regulation, but were told by the CFTC that they are not permitted to market Binary Options to US customers. For more information read our full update.
Banc De Binary Will No Longer Accept US Traders as Per CFTC
Banc De Binary has officially become the first EU licensed Binary Options broker. They are now regulated by CySEC (Cyprus Securities and Exchange Commission) and have thus become a licensed binary options dealer throughout the European Union of which Cyprus is a part of.
The CFTC has approached Banc De Binary in an effort to negotiate terms for gaining regulation in the US.
As part of the CFTC rules Banc De Binary will not be accepting new US clients during the course of these negotiations. Foreign customers and existing US customers will be able to continue using the Banc De Binary services.
In their press statement Banc De Binary which was founded in 2009 claims to have always adhered to US federal and state banking requirements. They are now committed to operate only in regulated countries. They feel that regulation will enhance the credibility of the industry and will enhance the long term success of Binary Options trading in general.
In a previous article I articulated the benefits of regulation for both the traders and the brokers. Traders will benefit with the knowledge that their deposits have a level of security as provided by the regulating authority. They will also have assurance that the regulated broker will be maintaining fair trading practices with accurate asset quotes.
The brokers and the industry will also benefit from further regulation. Questions of legitimacy have surrounded Binary Options trading since its proliferation in 2008. Licensing and regulation will only come to remove most of the doubts and scam claims and increase customer participation on a worldwide level.