The regulation of binary options in the United Kingdom has come under the full supervision of the Financial Conduct Authority (FCA) which is the financial regulation body in the UK. Binary options were previously regulated by the UK’s Gambling Commission and the Isle of Man’s Gambling Supervision Commission.
An official announcement by the FCA states that binary options in the United Kingdom are to be regulated in the same way as investment products starting from January 2018.
How this affects UK clients
Binary.com’s UK clients who wish to trade binary options on Forex, stocks, commodities, and indices are required to open a new account with Binary Investments (Europe) Ltd that’s regulated by the Malta Financial Services Authority (MFSA). This will give you access to the Investor Compensation Scheme managed by the MFSA.
Under EU financial services law, as Binary.com is legally established and authorised in one European Economic Area (EEA) country, i.e. Malta, it can operate legally in the UK.
Your existing account with Binary (IOM) Ltd will remain in use exclusively for the trading of Volatility Indices – synthetic products that will continue to be regulated by the UK’s Gambling Commission and the Isle of Man’s Gambling Supervision Commission.