Denmark set to impose permanent ban on offering of binary options to retail investors

Sourced from: https://financefeeds.com/denmark-set-impose-permanent-ban-offering-binary-options-retail-investors/

The FSA has repeatedly warned retail clients against investment in binary alternatives. The regulator notes binary options are inherently insecure and intricate goods and are frequently traded speculatively across the Internet with suppliers that don’t comply with investor protection rules.

The brand new rules will probably be equal to the product intervention measures ESMA introduced . The ban on the supply of binary options from Denmark, though, will be permanent.

A number of EU nations have also acted to ban the offering of binary options to retail dealers — for example, Germany, Austria, France, the united kingdom, and Cyprus. ESMA has been supportive of the national measures. Even the pan-EU regulator has issued favourable opinions on all proposals for national product intervention steps regarding binary options so far.
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The FSA shares ESMA’s and other qualified federal authorities’ concerns about the rising number of retail clients across the EU who buy binary options and constantly lose their cash. The Danish FSA also considers that the danger of retail customers will likely be current at both Denmark and the remainder of the EU, unless the competent national authorities exercise their power to impose a permanent ban to replace ESMA’s temporary ban.
FinanceFeeds –

The Danish ban may use to binary choices to retail customers in and from Denmark and will consequently apply to Danish securities dealers and securities dealers operating in Denmark through the freedom of institution or below the rules on the free supply of services.