There is some serious bad news for Binary Option trading lovers as the European Securities and Markets Authority (ESMA) has announced a complete ban on Binary Options to retail investors and had imposed leverage restrictions on the sale of CFD’s. These include:
Margin close-out rules on a single account basis
Protection against negative balance
Restriction on incentives
Complete disclosure on the risks involved
Full disclosure on the percentage of losses
The ban happened owing to the fact that there were certain investor complaints about constant losses that were being entailed and then the lack of transparency when it comes to financial spreads across the betting firms. As per recent surveys, it was confirmed that approximately 90% of the accounts in the EU have an average loss of approximately $2000 to $37000. The results are quite alarming indeed for an average investor.
The European betting firms were quite concerned with the decision owing to the fact that they could no longer dupe potential investors. When it comes to Crypto regulations, they are quite unregulated at this very particular moment and the ESMA has done its fair bit into curbing all the potential scammers across the globe. The European Union has taken strict action by the need of ending the anonymity associated with crypto traders. It has been constantly working hard to address the concerns associated with the use of cryptocurrencies by negotiating the virtual currency platforms and some wallets with the money laundering acts and counter these stupid practices.
Future announcements are soon expected from the official spokesperson of the organization.
