Known Scam Artists Arise Among the Binary Options Warned Brokers

News: Known Scam Artists among the Warned Brokers

From Swiss to Japan – the hunt for scam artists continue. Regulators have warned new brokers as well as brokers known to have a bad reputation. Swiss and Canadian authorities have warned two brokers due to unlawful activates and Japan has added a total of six new unauthorized brokers to their black list.

The Blacklists Just Keep Getting Longer

Japan’s FSA added six new unauthorized brokers to their blacklist and warned citizens against dealing with them. All of the six brokers are offering their services in Japanese which is viewed as phishing for Japanese clients by the FSA. None of the firms have registered or hold an office in Japan. They all have registered virtual or physical addresses outside of Japan, making them totally unauthorized to engage with Japanese traders.

LBinary is well-known by our weekly scam watch, having the highest number of appearances whenever there were complaints. However, they still insist on operating under the radar but they have not escaped the eyes of the regulators. Canada’s OSC has warned against LBinary due to the lack of authorization in the region and for engaging in activities that are risk-full to investors.

Two brokers who’ve been warned many times before have come under the spotlights of authorities again. The first one, Bloombex, is a well-known scam artist that is now being warned by the Swiss FINMA. This broker has been “red-listed” by authorities and is currently operating without a license and under a fake address. Earlier, it was warned by CySEC and Consob to due fraudulent activities. The second broker, Citrades, was warned by Spain’s CNMV. It is unlicensed and using an unregistered address. Last year, this broker was also warned by the BCSC because it was not authorized to offer services in Canada.

So Many Warnings, So Many Brokers

Every month, the number of warnings are increasing. Some regulators seem to be updating their lists to match each other’s blacklists. Canada is still struggling with the problem of having a unique regulator for each province. Japan seems to be the country that is on the right path thanks to their simple rules. If you are not registered and licensed in the country, don’t even bother making a website in Japanese. That will put you on the blacklist even if you are a good broker. The bottom line, if you are a broker and want to start taking on traders you better do it the right way, and in the right places.