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.