The online business is normally very widespread, with users being able to access the services from any point in the world. However, when it comes to regulatory activities, they are mostly concentrated on each of the regions. The norms and regulations differ from country to country.
Global Binary Options trading regulations
The same applies when it comes to the regulation of the Binary Options sector. Some countries have completely banned the activity of Binary Options brokers, where some banned online promotion of Binary Options products. Moreover, some of the regulators have banned only particular kind of Binary Options products.
The following breakdown of the Binary Options global regulations will be very useful for traders and brokers all over the world.
In the most part of North America, retail Binary Options are legal for trading. The only limitation here is that they should be traded on one of the authorized exchanges. These include NADEX and Cantor Exchange. Furthermore, in Canada, the regulators oblige any firm that is willing to offer financial instruments to get a license from them. However, Canadian watchdogs do not issue license for Binary Options.
In South America there is no specific ban for Binary Options trading. As a fact, in some of the markets, such as Chile, trading is currently on the rise.
As for the European Union, companies that have regulations in one country can utilize passporting license under the MiFID. The firms can thus facilitate their operations in all other member states. However, some of the national regulators set restrictions on the Binary Options trading. For instance, France has banned the promotion of Binary Options, where Belgium has completely outlawed the trade.
Turning to the Middle East, Cyprus is providing the regulatory norms for Binary Options that restructured it into the leading hub in the region. However, Cypriot neighbour, Israel, has entirely banned the Binary Options for locals. Also, it is working on spreading the message internationally.
Africa is one of the fastest growing Binary Options market. However, South Africa is the only area, where Binary Options trading is fully allowed.
As for Asia Pacific countries, Binary Options do not face any regulatory restrictions. Yet, the financial regulators of Australia, New Zealand, Hong Kong, and Japan provide specific norms for Binary Options firms to obtain license.