Netherlands to impose a permanent ban on Binary Options Advertising

Inspired by strict binary options regulation in France, the Dutch government has now become committed to stopping all kinds of Binary options advertisements. During a recent Parliamentary interview, Dutch Finance minister cleared his stand against all types of “Toxic Investment Products”, including Binary Options.

Netherlands authority of Financial Markets (AFM) has been constantly warning investors against risks of binary trading options and trying to regulate Binary trading option investments. With France also introducing strict bans on Binary Options, this step of AFM has once again clouded the future of Binary options in Europe.

Why this Ban?

According to Chairman of AFM, Binary options is extremely risky investments, only about 5% of the investors see any significant results. While advertisements across internet and television promote false information, enticing customers to easily double their money, while in reality about 95% of them only lose their money. But much like gambling, these binary options companies exploit user’s greed and make them invest more and more. This is why advertising ban on such toxic investment options is extremely necessary. Said AFM chairman in an interview.

Reports also suggest that AFM’s this bold steps are inspired by the footsteps of France Germany and Holland. Reportedly AFM also banned all major online gambling sites this February and this is a step forward towards maintaining the interest of people and society in general.

How and when will the ban come in place?

As the AFM has determined its stance against Binary Trading options, an independent committee will assess the risk factors associated with binary trading, CFD markets and present a report till the end of 2016. After reviewing the results, the Dutch government might impose a permanent ban on binary trading advertisements.

AFM is also closely working with CESR (Committee of European Securities Regulators) and IOSCO (International Organizations of Securities Commission) to ban all the service providers who provide services inside of Netherlands.

How will this ban affect you?

If you have a close relation with binary options industry than you are very likely to get affected by these new binary options regulations and bans. As the Dutch will ban advertising of binary options, other European countries might also impose a similar or stricter ban. A strict advertising ban will directly lead to less new customers and decline of the industry.

After France, Germany, Holland and more and more governments, imposing regulations on binary options, the future of the industry is certainly dark and clouded. However, another popular trading option Forex or Foreign exchange has been excluded from this ban. The ban will not only apply to Dutch passport holders but also to European passport holders residing in the country.

However, this ban is likely to be challenged in a court by many major Binary options trading companies. It will be interesting to see Court’s final verdict about this ban. But one thing is certain- the world is slowly making stricter and stricter binary options regulations to stop this risky investment.