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Screenshot of a breaking news alert e-mail from Q2 2017
Japan’s Financial Services Agency (FSA) has earlier today updated its “Black list” of overseas securities companies that are not allowed to offer their services to Japanese clients but nevertheless do so.
The regulator warns the public against dealing with ITCM Pte. Ltd., a Singapore-based company that operates under the name Platinum Option. The website of the company – www.platinum-op.com, has versions in English and Japanese languages, which means that the company is indeed targeting Japanese investors.
A variety of binary options is offered, including options with one-minute expiries. If you happen to know some of the basics of Japanese derivatives laws, then you are perhaps aware that binary options with such short-term expiry times are prohibited. Amid the reasons for this is their resemblance to gambling instruments.
Japan has stringent regulations for binary options providers, as binary options are treated by law as financial instruments. Companies, including overseas ones, should have the necessary licenses from Japanese authorities, in case they decide to offer binary options to Japanese residents.
As Platinum Option does not have the necessary license, it made it to the “Black list”.
To view the latest version of FSA’s “Black List” of overseas investment services providers that are not allowed to target Japanese clients, click here.