The Dutch Authority for Financial Markets is committed to ban advertising of binary options trading and contracts for difference (CFDs) in the country.
The Autoriteit Financiële Markten (AFM) has published a statement claiming that the said ban would help protect against activities that encourage “harmful investment” for some consumers.
The change will affect both Dutch operators and those active in the country on a European passport.
AFM chairman of the board Merel van Vroonhoven commented: “We find it very important that an advertising ban is for binary options and other harmful investment.”
“The advertisements for these investments lure consumers with the prospect of earning quick money, but the reality is that you can easily lose your entire investment,” Vroonhoven said.
However, the only licensed provider of binary options in the country “Optieclub” believes the proposed ban is no more than “window-dressing”. The company’s attorney added: “All necessary regulation to address misleading advertising already exists.”
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29 October 2020