This decision follows 6 months after the trading software firm shut down its binary options business. The solution will not be accessible after August. SpotOption provided trading platforms and exchanges for 50 percent of all binary options trading platforms. Last year in October, nevertheless, the Israeli government passed the law banning binary options sales outside of the country.
The legislation, that came into force in January, was adopted after the Israeli government learned that the industry was leading to significant damage for the country’s reputation. As a result, SpotOption, which is based in Israel, ceased providing software for binary options trading. In a month after Israeli legislation, the company ran a subsidiary, OTC Book, a liquidity provider for the CFD, FX and cryptocurrency markets. It seems that this business branch will be closing as well.
The distinct reasons behind SpotOption’s resolution to stop its CFD and FX activities stay unclear. It looks possible that it is connected by the European Securities and Markets Authority’s recent clamp down on the retail trading industry.
A wide ran of firge of organizations within the retail industry are shutting down or moving offshore as a result of the legislation that prohibits binary options and puts heavy restrictions on leveraged CFD and FX trading. Whether or not ESMA’s legislation is the key reason for SpotOption stopping its CFD and FX activities is uncertain. Though, it is reasonable to consider it certainly have had an impact on their business.