Banc de Binary, one of the largest and oldest binary options brokers, is shutting down its operations and has already stopped accepting new clients from the EU.
According to the company officials, the decision is the result of consistently negative press that the company faced over the past year.
“It’s become the wild west in the past few months. It’s just not worth the tarnished reputation. I don’t see how we can continue operating under such scrutiny and public image,” said the company’s official.
The official added that the binary option industry is about to lose its icon worth five hundred million dollars.
2016 – Detrimental year for Banc de Binary
Last February, the provider was ordered to pay $11 million settlement to US regulators, CFTC and SEC, following a multi-year investigation over allegations of illegally soliciting its services to US customers.
Just a month before, Banc de Binary faced another inconvenience, when CySEC fined it €350,000.
Considering sports sponsorships, Banc de Binary signed a deal with Southampton FC at the beginning of September. After less than two weeks, the parties have decided by mutual agreement to cancel the sponsorship deal, which was an obvious sign that something is not right.
Troubles with regulators
In October 2016, the Belize financial watchdog has issued a warning notice against BDB Services (Belize) Limited, trading under the name of Banc de Binary, for non-compliance with some of the conditions of the annex related to the license granted for “Trading in financial and commodity-based derivative instruments and other securities”.
In May 2015, another regulator CySEC, imposed two administrative fines on Banc de Binary after being investigated for some time. After three months, Banc de Binary was fined €22,000 for breaking the rules in the money laundering and terrorist laws.
The regulatory crackdowns have resulted in many binary options brokers being put out of business while many others have been slapped with hefty fines, and Banc de Binary is one of the most prominent examples.