Economy, Startups

Israel on the Spotlight : once again…

For a country that has recently been facing concern, Israel is again on the financial spotlight, and this time for fraud allegations. This has taken root in the binary options industry. Yeah, this industry with advertisement everywhere, even in Thailand ( or China (, became a true dark side of israeli startups.

The industry has been swindling locals and internationals and successfully getting away with their money. This has attracted attention both locally and internationally forcing the hand of Israel Securities Authority (ISA). In conjunction with the Finance Ministry, ISA has moved to ban industry’s operations both locally and internationally. This process has not moved without hindrances from part of the authorities who seek see the country into further corruption turmoil. The argument being that the binary options industry that has been running in the last decade has provided employment to thousands of employees who would be rendered jobless and thus engaging in nationalist crimes. They further argue that the ban would only result to the business’s relocation to overseas. Such arguments by the opposition were dismissed for being self-centered and a move to normalize a criminal activity.

Efforts to put it to an End

Shmuel Hauser, chairman of the Israel Securities Authority, seen at the Finance

The move to stop the binary options fraud industry by ISA has also received support from the Prime Minister’s Office as well as the Justice Ministry that has drafted the necessary legislations to cease operations of the business. Lobbyist and proponents have been working against the legislations seeking the binary options industry be regulated instead rather than closing them down.

This is not the first time Israel is facing closure of foreign exchange firms and binary options fraud industries. The attempts were outflanked by the proponents in 2011. This time things are promising to be different as there is back up from all key players in control of the regulation including the justice minister, approval by the finance minister as well as the government and the opposition.

Efforts Stalling

In an effort to have the efforts abandoned, advocates by the binary options are trying to delay the process making it lengthy in terms of weeks and months before the Knesset could approve. Top officials have also been indicted for corruption cases for taking bribes and linked graft investigations who include prime ministers and police officers. They have taken bribes to allow operations and continued support for the binary options industries operations.

The Never Ending Problem

In a case where the binary options firms are continued to run ignorantly, the effects will be far reaching to individuals in Israel to international levels across the border. This will leave lives ruined as was seen in the case of a Canadian who committed suicide three months ago after being fleeced by an Israel based binary firm. More young and innocent individuals will also be recruited to work for the criminal business activities by the fraudulent firms.

Affected individuals, current and former employees of the fraudulent binary options firms are encouraged to speak out and reach out to relevant authorities as well as through The Times of Israel


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