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Binary Options Regulated As Gambling in Russia

Binary Options Regulated As Gambling in Russia

Usually, you hear about countries blocking illegal activities, such as the Thai vendors who had their shares frozen. However, Russia is looking to regulate a market that one might consider safe from being considered gambling. Russia is assessing whether binary options should be considered gambling and regulated as such.

The Central Bank reported Russia might decide to regulate the market trading option, instead of being more severe. Europe and Canada have both removed binary options from retail client’s hands. The two countries have a complete ban in place due to the gamble investors take with binary options trading.

Binary options are trading type that involves option trading, only with binary numbers. It is a different way to trade that not everyone understands. In fact, options can be difficult to learn even for seasoned traders.

2017 Annual Report

In an annual report the Central Bank of Russia put out regarding 2017, the Russian authorities believe binary options are gambling instruments and need to be regulated. The announcement stated they are going to take a different route than what Europe and Russia have done, but they have ensured that binary options are suspended transactions to retail customers while they work on the regulatory details.

FinanceFeeds was the first to report the Central Bank of Russia’s decision. They will take an active role in watching what happens with the bill being drafted. The bill will most likely have some changes to the Federal Law on Securities, and other Russia based laws. The new bill will unveil the binary options rules.
What Russia is proposing at this juncture is to make binary options available through gambling operators, which means players in casinos and gambling venues would be able to invest in binary options. However, nothing has been elucidated on specifically as to how this will work.

The rest of Europe and Canada made their choice to ban binary options back in July 2017, about the same time that the Head of the Bank of Russia’s Department for Countering Malpractice announced that a change needed to happen in Russia for binary options.

Despite the early 2017 announcement, binary options were left available to customers, but with the bill being worked on it seems a change in allowing the product to remain was necessary. They do want to have a milder approach than other countries in Europe and Canada. It is why they are not completely banning the concept.

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