Because they are offshore, they are not regulated by any real regulator with any power. Therefore, they can do as they wish. When they have your money, they have a great interest in keeping it and making up rules which suit their wishes. Offshore binary option, forex or CFD companies are running wild, without any authority to control their criminal behavior.
If you notice, many of these offshore companies register a small company in the E.U. in order to process their payments. Or, they utilize other companies to process their transactions for them.
Either they don’t know – or they are turning a blind eye to their activies. Since when have Banks been protective to their own customers, let alone those who aren’t their customers.