At a time when a number of countries in Europe and on a global scale have been making decisions to impose effective ban on binary options offering to retail clients, the Russian competent authorities seem to be taking a slightly different path.
According to the 2017 Annual Report of the Central Bank of Russia, the Russian authorities take binary options for gambling instruments, which is why they are set to roll out a piece of legislation that will regulate them as such. This comes to prove that the country is probably going to use a gentler approach to regulate binary options – a step that differs from the steps taken by other countries in Europe and around the world, which have already moved to suspend binary options offering to retail customers.
As reported by FinanceFeeds, the Central Bank of Russia revealed in its report that it has actively taken part in the drafting of the bill which is expected to bring some changes to the Federal law on Securities, as well as to other laws of the country. The new bill is set to be focused on unveiling some rules for binary options, with such gambling instruments’ offering is to be allowed only between gambling operators and players in casinos and gambling venues situated in special gambling zones.
No further information on the matter has been provided by the country’s Central Bank for the time being.
Binary Options Under Fire in Some European Countries
Binary options regulation has not been an unknown issue for Russian authorities. In July 2017, the Head of the Bank of Russia’s Department for Countering Malpractice Valery Lyakh has hinted that local regulators could be considering some measures to deal with illegal practices related to binary options offering. Mr. Lyakh also confirmed that a large number of enquiries regarding binary options were made by police officers to the Bank of Russia. Still, he revealed that no binary options websites had been closed at the time when the information was revealed.
As mentioned above, the Russian Federation considers binary options as gambling instruments. For the time being, it seems that local authorities have chosen a milder approach to their offering, unlike a number of other European countries. So far, the beginning of 2018 saw the Netherlands Authority for the Financial Markets (AFM) demonstrate its willingness to ban some products such as binary options. As Casino News Daily has reported, the Chairwoman of the AFM revealed at the time that according to a recent study, between 74% and 89% of all binary options websites’ customers are losing money due to the fact they are not able to properly consider the risks in advance.
A couple of months ago, in November 2017, the UK Financial Conduct Authority (FCA) was announced as the regulatory body that would assume control over the binary options industry in the country. Later, on January 3rd 2018, the Authority took charge over the regulation of the activity, which has been earlier monitored and controlled by the UK Gambling Commission (UKGC).
Now, if binary options are officially set as gambling instruments under the new piece of legislation in Russia, their advertising is also expected to be legally permitted in the country.
Forbes’ Russian edition has reported that it was Russia that generated almost one third of the traffic to four of the largest binary options websites in April 2017, after analysing data provided by SimilarWeb.com.
The post Central Bank of Russia Hints Binary Options Could Be Regulated as Gambling Instruments appeared first on Casino News Daily.
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