The Quebec securities regulator is proposing to ban short-term binary options.
The Autorité des marchés financiers (AMF) said it is proposing an outright ban after several warnings to the public about the risks of investing in binary options and seeing fraud cases continue to emerge.
“Binary option platforms generally promise fast profits which are not paid out to investors” AMF chief executive Louis Morisset said in a statement. “We are committed to rigorously and pro-actively enforcing the prohibition”.
Interestingly, Quebec plans to allow long-term binary options to continue and may provide a regulatory opening.
If the proposal passes, Quebec’s AMF will join a small group of other regulators worldwide to impose an outright ban on short term binary option sales. We at BinaryOptionsCanada.net will certainly update our extensive guide on binary options in Canada if Quebec does pass this proposal.
As a reminder to our readers, no binary options brokers are licensed or regulated by Canada at this time. Companies still serving Canadian customers are doing so from offshore jurisdictions and complying with that jurisdiction’s set of laws.
Kevin O’Leary, television personality and candidate for Conservative party leadership has been integrated into a marketing campaign for “get rich quick” software schemes involving binary options.
The Ontario Securities Commission was in touch with O’Leary’s representatives and confirmed that the use was unauthorized.
“OSC staff have communicated with representatives of Kevin O’Leary and confirmed that he has not approved the use of his image in any advertisements or news articles involving binary options, and that he is not promoting or otherwise associated with any binary options trading software or programs,” the regulator said.
Binary options are NOT a good way to become rich. When presented with “get rich quick” schemes and software systems, people should use critical thinking — why would someone would give away the secret on how to become rich by doing nothing?
Binary options are a wager on the price direction of a stock, commodity, currency pair or other item often paying out high returns for high risks in short periods of time. We continue to believe that binary options can play a part in a balanced investing and trading strategy, but their use must be limited.