It ain’t over till it’s over – some binary options brokers do not let go of sports partnerships

Maria Nikolova

Even after its deal with France’s PSG came to an end, OptionWeb finds a way of touting its partnership with the football club.

In January this year, FinanceFeeds reported about several French football clubs having terminated their partnerships with binary options brands amid new law requirements that prohibited all sorts of sponsorships and partnerships that result in the promotion of high-risk financial products like binary options. Amid the football teams to bring such partnerships to an end was Paris Saint-Germain, with its deal OptionWeb quietly terminated.

Whereas the story of the PSG-OptionWeb might seem to have come to an end, the website of the binary options brand shows otherwise. The French-language version of the website shows a number of sports news sources amid the partners of the binary options platform. The list includes – a website containing “all news about Paris Saint-Germain”.

It seems that the broker is seeking a way to continue to capitalize on the love of PSG fans even after the partnership is over. Apparently, PSG FC is trapped in one of those partnerships from which one cannot get out unscathed.

The French “Sapin 2” law, however, prohibits this type of advertising. It is important, of course, to see how the law is put to practice and whether the fines it envisages will be in fact imposed.

OptionWeb asserts to be operated by Spot Capital Markets Ltd, which is authorized in Cyprus. OptionWeb’s website, however, is not on the list of domains approved by the Cyprus Securities and Exchange Commission (CySEC) for Spot Capital Markets Ltd.

The oversight methods of CySEC regarding binary options have raised eyebrows lately, as the regulator suspended four Cyprus Investment Firm (CIF) licenses of binary options and FX brokers last Friday, only to change its mind about some of them on Monday.

In the meantime, CySEC has outlined proposals for changes in the regulation of binary options providers. The controversy in the latest actions of the regulator, however, sheds a shadow of doubt on whether and how these rules will be implemented.

Read this next

Institutional FX

PrimeXM reports lower volumes for July as summer lull bites

PrimeXM has reported weaker trading volumes for July 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Retail FX

FCA warns of ATFX Global Trading / ATFXcoin

In its latest clampdown against the specific type of ‘clone fraud’, the Financial Conduct Authority (FCA) has warned local investors to watch out for a company called ATFX Global Trading / ATFXcoin.

Digital Assets

CME Group to roll out options on Ether futures next month

Derivatives exchange CME Group is set to roll out options on Ether futures on September 12 in a move to bring another level of diversification to cryptocurrency traders.

Industry News, Podcasts

Finance Feeds launches Podcasts: Listen to Ep. #1 feat. Dmitri Galinov of 24 Exchange

The team at Finance Feeds are happy to announce the launch of our Podcast series, available on Spotify and other audio services and hosted by our Editor-in-Chief Nikolai Isayev.

Digital Assets

Madfish launches Yupana.Finance, the first lending protocol on Tezos

Yupana, which aims to provide a similar experience to Aave or Compound, currently supports TEZ, cTEZ, kUSD, tzBTC, uUSD, and uBTC.

Industry News

SEC charges barred broker Anthony J. Mastroianni with $1.2m fraud targeting elderly

Instead of using investor monies to generate income, Mastroianni withdrew over $486,000 of investors’ money from his firm’s bank account and used ill-gotten funds for personal expenses on luxury items, the SEC alleged. 

Digital Assets

Unizen names crypto veteran Michael Healy as chief strategy officer

CeDeFi exchange Unizen has onboarded crypto industry veteran Michael Healy, who originally worked for Wikileaks and built their android application in 2010, as Chief Strategy Officer.

Institutional FX

Sterling Trading Tech adds FX and Crypto to risk and margin system

The Risk-as-a-Service solution provides supports FX spot, forward, and swap trades and positions, in any currency pair, as well as Crypto including crypto priced in any currency.

Interviews, Metaverse Gaming NFT

Exclusive: Wayne Marcel explains FIO Protocol amid fight against fraud on NFT markets

It’s been 12 years since Satoshi Nakamoto released the white paper that introduced Bitcoin to the world.