The Canadian Securities Administrators (CSA) are increasingly concerned about the growth in the number of websites promoting offshore binary options trading platforms that are targeting Canadians. The CSA wants to make it clear: no business is currently registered or authorized to market or sell binary options in Canada.
Binary options are like “bets” on how an asset (currency, stock, etc.) will perform in a limited amount of time – they are “all or nothing” wagers, similar to gambling. However, even when investors see virtual gains, they often cannot access these profits, as they don’t exist.
Offering investment services or products, whether online or in-person is a regulated activity. Investing with offshore companies operating outside of Canada can be risky and is a common red flag of investment fraud. Once offshore, it is often impossible for investors to recover their money.
Businesses illegally offering Canadians the chance to make quick and easy money from binary options are operating all over the world. CSA members are working together and with other regulators to share best practices in order to counter these widespread illegal activities.
The CSA encourages all investors to visit aretheyregistered.ca to check the registration of any person or company offering investments to Canadians. Anyone who has invested with, or has concerns about, an offshore binary options trading platform should contact their local securities regulator.
- Always check registration and enforcement history before investing.
- Be wary of giving out personal information (including credit card information) over the phone or internet.
- Don’t make a decision on the spot. Take some time to research the opportunity and review it with an independent third party.
- Ask to have written information about the investment sent to you.
- Make sure you fully understand an investment.
The British Columbia Securities Commission is investigating Sung Wan “Sean” Kim, the principal of Cirplus Futures Inc., a Vancouver-based exchange-contracts dealer. Anyone who has had recent financial dealings with Kim or is a client of Cirplus should contact the BCSC. Anyone who may have information about the whereabouts of Kim should also contact BCSC staff. […]