SpotOption to finish its FX and CFDs Business

During the past 2 years the company has only been providing products for the CFD and FX markets
18 June 2018   1079

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.

Binance to Join Forces With IdentityMind

IdentityMind provides exchanges with ability to comply with KYC\AML worldwide
26 March 2019   79

Binance announced an agreement with IdentityMind, which will help it ensure compliance with regulatory requirements and improve data security.

IdentityMind provides cryptocurrency exchanges with access to the platform, thanks to which they can monitor compliance with customer identification and anti-money laundering requirements in real time. This includes connecting new customers, managing their profiles and monitoring transactions.

The partnership between Binance and IdentityMind further strengthens our compliance capabilities and our commitment to re-invest in the blockchain ecosystem and grow it. We continue to evolve and enhance security systems while adhering to regulatory mandates in the countries we operate in. The goal is to foster greater trust among financial institutions worldwide.

Samuel Lim

Chief Compliance Officer, Binance

Last year, Bloomberg wrote about the Binance user identification system as the least strict in the entire industry, and linked the “level of anonymity” provided by the exchange with the risks of money laundering and market manipulation.

In October, Binance entered into an agreement with a supplier of transaction analysis software on the blockchains Chainalysis, and in November with Refinitiv, which developed an automated solution for client verification.

Whether the ordinary users of the platform will feel the impact of the integration of IdentityMind tools on themselves, the exchange does not specify.