ASIC Warns against 72Option and London Capital Group Clone

The Australian Securities and Investments Commission (ASIC) has issued warnings against two brokerages, 72Option and a clone of London Capital Group. The regulatory authority expressed concern that the two financial entities might be running scam operations.

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The two Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term companies have been soliciting clients by phone and email, offering financial services and advice without acquiring an Australian Credit license or a current Australian Financial Services (AFS) license. Due to their running both operations illegally, the Australian financial watchdog has alerted traders that they might be involved in a scam.

ASIC strongly advises against funding an account or trading with the two aforementioned firms.

72Option, also known as Epic Ventures Ltd., is a binary options broker claiming an office at the Landmark Building, 14 Tsar Osvoboditel Blvd, 5th Floor, 1000 Sofia, Bulgaria. London Capital Group is a clone of the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term brokerage, and claims an office at 8 King Edward Street, London EC1A 7BA, England. In the warning against the latter, ASIC provided a link to the UK's Financial Conduct Authority (FCA) regarding the clone firm.

ASIC’s Recent Endeavours

Today, the Australian regulatory authority may begin taking further action in policing the local markets and protecting traders and investors based in Australia. One such precaution will be gaining broader access to clients’ telecommunications, including emails, data, messaging history, voicemails, and subscribers’ details. The regulatory body states that this new policy will assist in investigations against brokers that are running scam operations.

Currently ASIC, among other regulatory authorities around the world, refrain from intercepting calls, but that may change once alterations are made to the Telecommunications Interception and Access Act (TIA Act: 1979).