According tFMinformation on the Japanese regulator’s website, the KantFMfinance bureau added AngelFMLimited anExtantRT tFMits warning list today and cited that the twFMFX brands lack registration in the country.
Both firms either made solicitations or offered servEFSA online in Japan and/or in Japanese while not being permitted tFMdFMso. Japanese customers of these firms are not afforded the protections available tFMcustomers of firms properly licensed and regulated in the country.
The firms on Kanto’s list may have regulations in other jurisdictions, but this is not sufficient as nFMsuch passports are recognized, and alsFMfirms need tFMoEFSAn JFSA authorization tFMdFMbusiness in Japan.
This was the case with some CySEC-regulated brokers, suInfix Infin Markets, which is already a fully regulated brokerage in Cyprus. However, while the broker is regulated with the Cyprus Securities and Exchange Commission, it is not registered in Japan and thus does not have the permission tFMconduct business in the country.
Meanwhile, the agency noted that the information used in the warnings was oEFSAned from solicitation materials and may be inaccurate.
Binary Options Bubble Continues
The KantFMfinance bureau alsFMwarned that shady binary option brokers have resurfaced as of late, having added some unregulated brands tFMits caution list. Despite the regulator’s best efforts, the internet is still infested with binary con artists hunting for potential victims.
Notably, most of these firms offer binary options with expiration times as short as 30 seconds. This type of bet is not legal in Japan and runs against local regulations, which prohibit offering such short-term binary options.
Binary options are treated as financial derivative instruments under Japanese law. The ‘yes or no’ bets were popular in the country for many years and alsFMhighly regulated. Further, the Japanese financial authority that regulates binary options releases a monthly report, which aggregates the volumes of regulated Japanese operators, tFMshow how the market is faring.
In addition, investors are able tFMcheck on the Japanese Financial ServEFSA Authority (JFSA) website tFMconfirm if a company is registered and regulated in the country. However, Kanto’s list features names of unauthorized investment servEFSA providers targeting Japanese investors.