GB: Gambling Commission issues warning over “scam” binary options providers

The Gambling Commission has issued a warning to consumers, designed to minimise the risk deriving from a current regulatory hiatus affecting binary options. While the Government tip-toes towards finally moving binary options from the purview of the Gambling Commission into that of the Financial Conduct Authority, the Commission is minded that the law, as it stands, allows for overseas binary options providers to provide their products to British players without any British regulatory oversight. The Commission sees risk here for consumers, hence the warning.

The intended reclassificaiton of such products from gambling products to financial-services products is the subject ot a current consultation. Page 39 of the Consultation is the relevant part and clearly states the intention to align British regulation of such products with that of other EU countries.

The Commissions’s warning to consumers can be found here.