Scotland takes steps to eliminate binary options websites’ smokescreen

Maria Nikolova

Scottish limited partnerships, which often act as corporate fronts for binary options sites, will have to reveal their owners’ identities, under new regulations that come into force on Monday.

An important legal change is about to put an end to the abuse of the status of Scottish limited partnerships (SLPs) by binary options fraudsters. Scottish Partnerships (Register of People with Significant Control) Regulations 2017, which come into force on June 26, 2017, will bring SLPs into line with others in the UK, as they will have to disclose the identity of their beneficial owners within 28 days.

In case the partnerships fail to comply, they will face daily fines of up to £500.

The UK Government estimates that around 30,000 firms registered as Scottish limited partnerships will have to reveal their owners’ identities under the new laws.

The changes come amid allegations that some of these companies are vehicles of crime, with a 236% jump in the number of Scottish limited partnerships registered between March 2011 and March 2016.

FinanceFeeds has noted that SLPs are often used by binary options fraudsters thanks to the special status of such partnerships – thus far, they have been allowed not to reveal the identity of their owners and to file no accounts. A recent report by the Scottish Herald has claimed that 43 Scottish shell companies act as corporate fronts for binary options sites. Of these, 41 are Scottish limited partnerships. Moreover, at least 22 of the shell companies are named as owners or payment processors on websites subject to international warnings.

Unlike those set up in England, Wales and Northern Ireland, Scottish limited partnerships have their own “legal personality”. This means that they can hold assets, borrow money from banks and enter into contracts. A limited partnership is a particular type of business made up of a number of partners, who can be people or other business entities.

Under the new laws, Scottish limited partnerships will have to provide information about the people or legal entities that have significant control. There will be guidance alongside the regulations to help SLPs to establish who has significant control over them and to understand the detail of the new rules.

The information provided by Scottish limited partnerships will be published on the Companies House register.

Scottish Secretary David Mundell said:

“Campaign groups and media activity have highlighted growing concerns that SLPs had the potential to be used for criminal activity, and by introducing stronger deterrents the UK government is encouraging transparency.”

Read this next

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

Crypto Insider

DeFi Winter Thaws: A Look at the Emerging Landscape

The past year has seen a significant shift in the Decentralized Finance (DeFi) market, transitioning from a period of decline (“DeFi winter”) to a potential season of growth.

<