CFTC Adds 34 Illegal FX and Binary Options Platforms to the RED List

The United States Commodity Futures Trading Commission (CFTC) has added 34 new names of unregistered platforms to its Registration Deficient List (RED List) that are illegally offering financial services in the country.

The added names are Algobit, Ltd., Cent Projects, Ltd., Alis Capital Inc., CloseOption, B.O TradeFinancials, CryptoBO, Bitpay Options, CryptoSphereFX, Bluegate Financial Services, DestroFX, Capital Forex Trade, Direct Cryptos, Capital Trading Hub, Dynamics FX Trade, Capitalone Trade, Expirex Trade, FXBrew, QuickFXTrade, FX Optimax, Renesource Capital, FX-Cryptex, SageFX, HankoTrade, Stockinvestmentfx, IQFXTrade, Swissglobaltrade.org, Menne Market Ltd., The Traders Domain, Octave Trade, Tifu Global Limited, Pocketoption, TradingDeskFX, Prime Crypto FX and Wolves Trade FX.

Illegal Platforms

These platforms are primarily offering derivatives trading with 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, cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and other asset classes. Some of them are even offering binary options, which are allowed in the US under heavy regulations but banned in the UK and EU.

“A firm is added to the RED List when the CFTC determines, from investigative leads and public inquiries, that it is not registered with the Commission and appears to be acting in a capacity that requires registration, such as trading binary options, foreign currency (forex) or other products,” the regulatory announcement stated.

To offer derivatives products in the US, platforms need to be registered with the CFTC and be a member of the National Futures Association (NFA).

However, none of the 34 companies added to the RED list are licensed to operate in the United States. At least one is falsely claiming to be regulated by the CFTC, while a few seem to have some offshore license. Several of these platform operators have now taken down the platforms.

Almost all of them look like fraudulent platforms, at least one even taking deposits only in Bitcoin.

Last month, French regulators blacklisted 20 such illegal forex trading platforms, while regulators of Cyprus, Italy and the UK regularly update their warnings list.