Bank of Russia prepares framework distinguishing binary options from derivatives

Maria Nikolova

The framework for regulating derivatives, which will cover the problem of binary options, is set to be ready in the fall.

Russia, where the binary options segment is not regulated, is a lucrative target for binary options fraudsters. The Bank of Russia still has not made any particular steps with regard to this problem, but Valery Lyakh, Head of the Bank of Russia’s Department for Countering Malpractice, has indicated that some measures to tackle this type of fraud are on their way.

Speaking to Financial One magazine, Mr Lyakh confirmed that the Bank of Russia is getting numerous enquiries about binary options from police officers from across the Russian Federation. Many of them need expert opinions on this topic.

However, Mr Lyakh conceded that thus far the Central Bank has not closed any binary options website, based on the fact that a website offers binary options, as the powers of the regulator do not spread over this type of instruments.

One of the problems highlighted by the official is that binary options in theory are like financial derivatives but in practice work like gambling instruments. That is why, the Bank of Russia plans to outline a framework for legislative changes concerning the regulation of derivatives. The document will cover the binary options problem, as binary options have to be differentiated from the “normal” financial derivative instruments. The document is set to be ready around the fall.

Also, the regulator is preparing an information leaflet about binary options that is set to warn the public of the risks associated with them.

Mr Lyakh suggested that an international action against pseudo-financial activities will most likely come from IOSCO. He noted the growth in the number of fraudulent companies being based abroad and offering their services to Russian clients.

According to estimates by the Russian edition of Forbes, Russia generated 29% of the traffic to four of the biggest binary options websites in April 2017. Forbes based its estimates on data derived from The data show that in April this year, the four platforms in question had more than 50 million visits. This means that Russia accounted for 14.5 million of them.

Estimates by Financial One magazine show that Yandex gets 100,000 queries about “binary options” each month.

Read this next


BlockDAG aka Kaspa’s Toughest Competitor Releases DAGpaper, Lightes Up The Las Vegas Sphere Pulling Shiba Inu Investors & Amassing $16.4M in Presale

BlockDAG, emerging as a Kaspa competitor, unveils its DAGpaper, spotlighting the Las Vegas Sphere and captivating Shiba Inu investors with a $16.4M presale success.

Fundamental Analysis

Global FX Market Summary: USD, ECB, Gold, Oil  April 12 ,2024

A strong US economy, cautious Fed policy compared to Europe, and safe-haven demand are all fueling the surge of the US Dollar.

Digital Assets

Thai crypto exchange Bitkub eyes $3 billion valuation

Thailand’s largest cryptocurrency exchange Bitkub is gearing up for a public offering next year with a potential valuation of up to $3 billion, according to Bitkub Capital Group CEO Jirayut Srupsrisopa.

Technical Analysis

GBPUSD Technical Analysis Report 12 April, 2024

GBPUSD currency pair can be expected to all further toward the next support level 1.2400, target price for the completion of the active minor impulse wave.

Market News

Navigating Currency Trends: Extensive Analysis on EUR/USD Signal

Traders Union provides comprehensive daily analysis and signals for EUR/USD.

Retail FX

Axi extends sponsorship of Brazilian Esporte Clube Bahia

Forex and CFD broker Axi has just announced they’re extending their sponsorship with Brazilian Serie A team Esporte Clube Bahia into the 2024 season.

Digital Assets

Binance-backed Gopax narrows losses amid strong crypto trading

Binance-backed cryptocurrency exchange Gopax reported lower net losses for 2023, according to its parent company Streami’s year-end financial report.


99Bitcoins Launches Learn-To-Earn Presale and Raises $150K On First Day

99Bitcoins, established in 2013, has recently begun its token presale in an effort to harness the current upward trend in Bitcoin’s value. The 99BTC team, seizing this opportunity, offers its learn-to-earn platform, a longstanding resource in cryptocurrency education.


Brokeree Solutions Review

Brokeree Solutions is an international provider of innovative technological solutions for multi-asset brokers worldwide. The company specializes in high-grade solutions development, including flagship Social Trading, PAMM, Prop Pulse, and Liquidity Bridge. With 10 years of industry expertise and an extensive product portfolio, Brokeree Solutions offers technologies covering almost any broker’s needs.