They are largely helpless, and they know it. They can do very little in the internet age to defend their citizens against the peril of this need breed of scammers – ie. unreglated offshore binary option “brokerages”. Perhaps they can somewhat regulate those operating in their own jurisdications – but they are obsolete in the face of this billion dollar threat facing their own innocent citizens.
Some regulatory authorities, like in Belgium, recently banned Binary Options. Many jurisdications are thinking about banning Binary Options as well. However, will this stop the unregulated binary option providers from operating within their countries? Hardly – it will open the doors for the criminals, in our opinion.
All they can do is warn the public. They cannot arrest anyone because the enforcement agencies largely do not have the time or the skills to devote to revealing who the true owners and operators are. Without fear of punishment, the owners of the scams will continue to thrive.
According to our experts, they can’t do anything. They cannot shut down websites and search engines like Google allows these websites to appear in their Search Content worldwide. They cannot catch the owners of these scams because they hide behind corporate structures. This is why we created the BRC.
In our experience, it may be a necessary step. However, ombudsman are again only effective inside their own jurisdiction. Therefore, those binary option companies operating or registered offshore are untouchable by any ombudsman.
Home regulators – like the CFTC (USA), FCA (UK0, ASIC (Australia), BaFin (Germany), CYSEC (Cyprus) are all effective regulating online trading entities who have registered or operate inside their jurisdictions. They can do very little if anything when faced with a binary option or forex broker who are registered offshore.