Russia remains lucrative target for binary options fraud due to lack of regulation

Maria Nikolova

Russia accounted for 29% of the visits of four of the biggest binary options websites in April, according to Forbes.

While regulators across the globe take measures to tackle binary options fraud, including arrests of masterminds of investment scams and imposing bans on offering of binary options, Russia is staying aside.

As previously noted by FinanceFeeds, the Bank of Russia, which regulates the financial services industry in the Russian Federation, has no stance on binary options regulation. In fact, the “Megaregulator” has referred to “binary options” in only one document, which concerned the plans to reform the concept of securities brokers. There was nothing straightforward there with regards to how binary options are treated by the central bank.

In the meantime, thanks to this lack of regulatory measures to tackle binary options fraud, Russia is one of the biggest targets for binary options scams. According to research by the Russian edition of Forbes, Russia accounted for 29% of the visits of 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. Very far behind it in the ranking are Thailand, Brazil, Turkey and Vietnam. The countries are apparently ones where regulation is lax.

The Forbes research goes on to estimate the size of losses to binary options fraud suffered by Russian investors. The binary options platform developers put the turnover of the binary options industry at $8 billion a year. This number may be exaggerated. But if we agree that the number is $2-3 billion a year, then the Russians still lose tens of millions of dollars to binary options fraud every year.

Whereas nations like France have moved to ban advertising of binary options, including all sorts of binary options partnerships with sports teams, Russia may be looking in the opposite direction. In March this year, Russia’s president Vladimir Putin signed a very interesting bill into a law. The document is about advertising of gambling/gaming activities in Russia, and sports partnerships in particular. Under this law, gambling operators, bookmakers, etc, making use of advertising deals with sports teams, have to allocate funds for sports events and sponsoring the development of sport activities in Russia. That is, if they allocate such funds, they will have no problem advertising their activities.

If Russia decides to treat binary options as bets, following the example of the UK, for instance, then binary options firms will have no problem with regards to advertising as long as they fund the development of Russia’s sports.

This is, of course, a matter of speculation. But until the Bank of Russia announces its official stance on binary options, there is plenty of room for speculation and, unfortunately, for fraud.

Read this next

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: FED, ECB, Global Inflation, May 27 ,2024

Central banks walk a tightrope: Fed stays hawkish on inflation, ECB eyes rate cuts but waits on data. This could cause currency swings and impact global economic growth.

Metaverse Gaming NFT

Despite $1 billion lawsuit, Cristiano Ronaldo launches new Binance NFTs

Cristiano Ronaldo has unveiled his fourth non-fungible token (NFT) collection in collaboration with Binance. The new collection is set to debut on the Binance NFT Marketplace this week, featuring highlights from Ronaldo’s football career.

Market News, Tech and Fundamental, Technical Analysis

GBPJPY Technical Analysis Report 27 May, 2024

GBPJPY currency pair can be expected to rise further toward the next resistance level 202.00, which is the target price for the completion of the active impulse wave 3

Digital Assets

Celebrity X accounts hacked to promote meme tokens

Several celebrity and influencer X accounts on social media platforms have been hacked, with the attackers promoting various cryptocurrencies and meme tokens.

Digital Assets

Silk Road founder to walk free if Trump re-elected

Donald J. Trump has vowed to commute the life sentence of Silk Road founder Ross Ulbricht to time served if he is re-elected as president.

Industry News

UF AWARDS Global 2024: Nominations Closing Soon!

There is still time to nominate your brand at this year’s prestigious UF AWARDS Global 2024.

Digital Assets, Uncategorized

SSV.Network to reduce hardware requirements by up to 90%

With projections indicating a milestone of 50,000 validators within the next year, the platform’s scaling roadmap represents a crucial step toward achieving this vision.


Understanding DeFi: new opportunities beyond traditional banking

Dive into the dynamic field of DeFi with our comprehensive article that explores the transformative power of DeFi beyond traditional banking. Discover the broader implications of DeFi in areas like lending, borrowing, and governance.

Retail FX

Exness wins double honours at FMAS 2024 as Best Multi-asset Broker and Most Trusted Broker in Africa

Exness, one of the world’s largest brokers, celebrates a major achievement at the Finance Magnates Africa Summit (FMAS) 2024, securing the prestigious titles of Best Multi-Asset Broker and Most Trusted Broker in Africa.