Quebec’s financial regulator seeks to ban certain types of binary options

Maria Nikolova

Quebec’s watchdog states that binary options platforms are “run by people who are acting illegally and embezzling victims’ funds” but stops shorts of proposing an outright ban on all sorts of binary options.

FinanceFeeds’ has been keeping you updated on the latest measures taken by regulators and enforcement agencies to stop fraudulent binary options schemes.

Quebec’s regulator seems to have woken up to the fact that public warnings against certain binary options providers do not do much to prevent investors from losing hefty amounts of money. Today, Quebec’s financial markets authority (AMF) unveiled its plans to amend the Canadian province’s Derivatives Regulation in order to formally prohibit the offering of specific kinds of binary options to Quebec investors.

Interestingly, the watchdog stops short of imposing a blanket ban on offering of all sorts of binary options. Instead, its proposals envisage a ban on binary options with expiries of less than 30 days. Apparently, Quebec’s AMF believes that certain types of binary options are harmless.

Nevertheless, AMF President and CEO Louis Morisset admits that:

“Binary option platforms generally promise fast profits which are not paid out to investors. They’re run by people who are acting illegally and embezzling victims’ funds”.

Quebec’s regulator has opened a consultation on the proposals. The draft Regulation to amend the Derivatives Regulation, comes with a 30-day comment period.

Quebec’s financial markets watchdog joins a growing group of regulators trying to take more decisive measures to tackle binary options fraud. Under the “Sapin 2” law, France has recently introduced a ban on all sorts of advertising of high-risk financial products, including binary options.

Whereas regulators mull how to act against fraudulent schemes involving binary options, EUROPOL has also thrown its weight behind this fight. This is considered as a particularly good piece of news, as the enforcement agency has powers that national financial regulators do not have. EUROPOL, for instance, may prosecute employees of binary options brokers, including sales representatives who often use aggressive and manipulative techniques to solicit investments. Thus, EUROPOL’s intervention is expected to be more effective than the warnings and statements issued by national financial regulators.

Read this next

Digital Assets

Kraken signs commitment to launch regulated business in Canada

San Francisco-based cryptocurrency exchange Kraken has filed a pre-registration undertaking with a Canadian provincial regulator as it works towards becoming a regulated provider in the country.


TT’s Keith Todd brings fixed income and cybersecurity to FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Keith Todd about Trading Technologies’ move to fixed income after nearly 30 years of existence. TT is also proposing cooperation and transparency among competitors to tackle cyber risks.

Digital Assets

Binance joins FIDO Alliance to enhance user security with introduction of passkeys

“With passkeys, a user can quickly and safely sign in across multiple sites, apps, and devices with local biometric authorization. Binance will offer users a more secure and streamlined experience using passkeys on our platform without compromising on security”.

Digital Assets

ipaymy taps TripleA in Singapore for rent, invoices, taxes, salaries in Crypto

“Our white label crypto payment solution enables our partners to reap the benefits of accepting crypto payments, without managing crypto on their balance sheets. This makes it an ideal solution for businesses looking to offer cryptocurrency payments volatility-free.”

Industry News

London and New York rank joint first as top financial centers, according to…London

“The UK remains one of the most open and global financial centres with better access to international markets than the US, France, or Japan. But our competitive advantage is at risk.”


Sterling Trading Tech (STT) discusses their Risk & Margin System at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Chief Customer Officer Keith Cacciola and Managing Director of Business Development Andrew Actman about STT’s competitive advantages, the challenges their clients face today, the firm’s product roadmap and new leadership at STT.

Institutional FX

Swedish online brokerage pioneer Nordnet deploys Citi Securities Lending Access platform

“Nordnet was one of the first online brokers in Sweden and has since expanded into a pan-Nordic leading digital platform for savings and investments. We are proud to add this collaborative initiative to our ever-growing list of market innovations for our customers.”

Digital Assets

Elwood integrates Fireblocks to further connect digital asset ecosystem

“As a first port of call, the integration of Fireblocks will enhance the portfolio management system experience for clients, providing users with a comprehensive view of their current and historical digital asset positions across all venues, including their Fireblocks movements and balances.”

Industry News

OKX to open office in Australia, starts rivalry with Kraken in Formula 1

“Our ambition is straightforward – to become the leading crypto platform in the world. We see Australia as an indispensable part of this strategy and a key growth market.”