Dutch Court Ruling Says Binary Options Not The Same As Gambling
The binary option industry is considered by many as nothing more than gambling as it is based more on luck than skill. This has been challenged by binary option companies in the last few years as they are keen to attract real investors to their product and not gamblers looking for a quick buck. The regulation of binary options as a financial commodity goes back to the Cyprus Securities and Exchange Commission (CySEC) who in 2012 turned themselves into a favorite for binary option providers looking for a seal of approval.
Other jurisdictions offer binary provides licenses based on the fact that they are games of chance. The murky status of binary options took an interesting turn this week as a Dutch binary option brand Optieclub.nl managed to win a legal victory over the Dutch Financial Regulator Autoriteit Financiele Markten (AMF). A Dutch Court mandated the AMF to grant a financial license to Optieclub.nl. Until the decision they were refused a license due to the fact that the regulator saw their product as a game of chance.
This decision by the Dutch court to grant a legal license could have far reaching consequences for binary option providers throughout Europe as they are now defined as a financial instrument under the MiFID. Lawyers for Optieclub were delighted at the ruling and explained that regulators were no longer allowed to introduce policies unilaterally.