Industry Reports

Israel Thumbs Up Bill to Prohibit Binary Options Betting

The world is getting smaller for thebinary options brokerage businesses as officials started to target shady binary betting practices. As it can be recalled, mere days ago Casino Reports found out that England has already started its war against binary betting scams. But it seems that it is not the only country, which tries to combat scam binary options brokers.

On Monday evening, Israel’s national legislature the Knesset approved a long-discussed bill to ban Israel’s binary options industry after millions of people reported losing tons of money in scams. The bill is to enter Israel’s legal framework 3 months after all the 51 legislators unanimously voted in favor of the bill yesterday. The bill introduced by Chair of the Knesset Reforms Committee MK Rachel Azaria (Kulanu) is to prohibit the provision of binary betting options even for within Israel’s borders. The bill stretches its arm even to the operators, are based outside Israel.

Binary betting options allow players to place bets on price movements in various sectors, including currency, stock markets and much more. But this business emerged as the leading form of financial fraud around the globe. A number of people were duped by these binary betting options scams and many countries decided to prohibit the provision of these services.

Being aware of the shady operators within the binary betting business, Chairman of the Israel Securities Authority Shmuel Hauser and the Israel Police noted that the implementation of the bill is crucial for the country as its reputation was harmed by the binary betting scams. This, on the other hand, resulted in anti-Semitic outbursts, which should be stopped in a timely manner. To speed up the process, Azaria hurried to summon the Special Committee on the Planning and Building Bill and the Maternity Leave and Parenting Bill during the committee’s summer recess.

The commissioners were assigned the task to prepare the bill for a second and third reading, so that when the Knesset returns for its winter session, the bill would be ready to enter the Knesset for discussion and voting. And it seems that Coalition Chairman MK David Bitan kept his promise to pave the way for the bill to pass the Knesset.

Israel Baying against Binary Betting Options

Israel has become the center of the binary options betting scams. In September, FBI arrested the CEO of the Israeli based binary options company Yukom Communications Ltd. at John F. Kennedy International Airport in New York. Lee Elbaz was accused of fraud involving binary options betting. Shortly after being detained, Ms. Elbaz was released from custody on bail of $1.8 million. According to the latest information, she is under house arrest until her trial opens. The hopes that the shady binary betting businesses started to step back were shattered last week in London. The City of London police raided 20 offices, and it was revealed that nearly £19 million had been lost in binary options betting scams.

Here it is interesting to note that the bill treats online gambling and binary options betting in a similar way. That might be explained with the fact that many online gambling operators reshaped their businesses into binary options brokerages. Under the new rules, the development of a software for binary options will be still allowed, but the provision of such services will be outlawed.