Israeli government to permanently outlaw binary options industry

The Israeli government has approved a bill to ban the entire Israeli-based binary option industry and put a halt to its ominous consequences. 

The Bill was welcomed and approved by the Ministerial Committee on Legislation, despite rumours maintaining that lobbyist for binary option brokers intended to block the passage of the bill, the latter has been successfully approved and welcomed by authorities all over the country and will now be read before the Knesset plenary, where it will be debated by the Knesset Finance Committee and finally read a second and third time before the Knesset plenary.  

The binary options industry offers a simple two choice possibility, the payoff is either you win money or nothing at all. Frequently perceived as a potentially profitable short-term investment; very often, however, this conceals a fraudulent network of companies and brokers trying and succeeding in luring less experienced investors into financial scams. Hundreds of thousands of investors are scammed every year and deprived of most (if not all) of their savings. This leaves them in considerable distress and even brought some to take their lives.

Shmuel Hauser, the Israel Securities Authority (ISA) Chairman, who drafted the law in association with the attorney general and Justice Ministry, expressed concerns in relation to mounting anti-Israel and anti-Semitism feelings stemming from the association of Israel with the binary options industry.

The proposal comes after the Times of Israel began exposing the fraudulent network set-up by the binary option industry. This, together with the constant lobbying conducted by Giambrone aimed at the regulating authorities and Israeli law enforcement agencies, led to an initial ban preventing Israeli binary option brokers from selling their products domestically. However, given the financial damage the industry was causing all over the world, compelled the Israeli authorities to step up to put a total ban to the global sale of their products.

Gabriele Giambrone, Managing Partner and founder of Giambrone, commented: “I could not welcome the passing of the bill more. The Forex and Binary Option department at Giambrone has spent considerable time trying to expose the damage this fraudulent industry was causing by lobbying regulatory bodies- and law enforcement authorities”. He then added “Giambrone will continue working towards the banning of all fraudulent financial services and will not stop until all wrongdoers are held culpable and are faced with the consequences of their mischief”.

The banking and financial litigation lawyers at Giambrone hold a significant record of successes in retrieving lost investments for our clients in class actions against companies such as Telexfree and TIRN.

If you believe to have been the victim of a binary option scam, do not hesitate to contact us at clientservices@giambronelaw.com or telephone +44 (0) 20 3102 9482. Our lawyers will help you retrieve your funds.