UK’s Financial Conduct Authority has announced its plans to monitor binary trading starting next year to prevent scamming.
UK.- An increase in the amount of complaints and reports of scamming in the binary trading sector in the United Kingdom has turned the Financial Conduct Authority (FCA) to take action.
The body will take over binary trading regulations as of January 3, 2018, in order to authorise and supervise companies involved in this activity. Binary trading has become very popular in the last few years and it will most likely keep expanding its reach. However, unlawful practices have also increased in the past months ant that’s why the FCA will step in to monitor trading.
Nevertheless, it will only cover company trading, whilst individual complaints will have to be referred to the Financial Ombudsman Service with consumers having access to the Financial Services Compensation Scheme.
The FCA announced protection won’t cover any loses the companies may have, as nearly 700 people reported losing a total of £18 billion during the first semester. “Be wary if you are contacted out of the blue, pressured to invest quickly or promised returns that sound too good to be true,” the FCA said in a statement.