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Binary Options as an investment type is in it’s infant stages. Somewhere between trading and online gaming, many are calling this new investment vehicle “financial gaming” and it’s definitely creating a stir in the markets. We’ve built this portal to offer traders and gamers alike the... More
  • US Regulators Take Aim At Bitcoins: Are Bitcoins The New Virtual Currency?

    Bitcoins- the new virtual currency?

    First published on

    Bitcoins are beginning to take hold. Everyone wants them. Online Forex firms want clients to trade them. Companies want to accept them as methods of payment. The virtual currency is arriving. However, the government regulators want to take a closer look at Bitcoin and maybe even regulate them.

    Last week the very first government regulator jumped into the mix. Not surprisingly, it was out of the US which has some of the tightest commodities, Forex and binary options regulations on the earth. The Commodities Futures Exchange (CFTC) is considering into whether or not Bitcoin falls under its regulatory scope. The CFTC Commissioner Mr. Bart Chilton has been quoted as "Bitcoin "is for sure something we need to explore. It's not monopoly money we're talking about here - real people can have real risk in these instruments, and we need to ensure that we protect markets and consumers, even in what at first blush appear to be 'out there' transactions."

    The biggest challenge to Bitcoins today is regulation from government agencies like the CFTC, Department of Treasury in the US and the newly formed FCA in England. Right now, the US Government has not said much regarding the digital currency, but as interest grows in Bitcoin and more companies offer the product to traders then regulatory agencies will start to consider ways to regulate it. Especially since Bitcoins has been on the front of the Wall Street Journal. Recently, the WSJ reported that PayPal announced they were looking into ways to offer Bitcoin as a method of payment. This will help Bitcoin's reputation and as companies like PayPal start offering payment type services, then government agencies like the US Treasury will want a better paper trail and governance to inhibit money laundering.

    Regulatory agencies will want to make Bitcoins more transparent. As firms like IG and Mt. Gox wish to offer clients binary bet options and US firms start to enter the fray, their need to regulate will grow.

    While we feel that agencies will not go as far as to ban Bitcoin, it will be interesting to watch regulatory agencies struggle to type Bitcoins as a product. Is it a virtual currency? If yes, what country does it represent? How do you regulate a virtual currency?

    We will have to wait and see how things unfold.

    Read the trading guide

    Tags: Bitcoins
    May 13 4:36 AM | Link | Comment!
  • Is Japan's Abeonomics Actually Working?
    Is Japan's Abeonomics Actually Working?

    Last night was a busy night for Japan, with a huge amount of data released across the board. The problem is the data was so mixed it's impossible to tell if "Abeonomics" are helping the world's third largest economy.

    Household spending was up by 5.2% last month compared to the same time last year. The unemployment figures fell to 4.1 % which slipped below analyst estimations of 4.3 %. Then again retail sales proved to be a disappointment with a 0.3 % fall. Analysts had forecast a rise of 0.6 %. Finally industrial output gained a tiny 0.2 % last month over the month before.

    The picture this differing data paints is that things will not be as simple as indicated by the BOJ, there is still some way to go. The Japanese economy has a very delicate base on which it is building. There are of course hopeful moments among the data and with the weakening of the Yen however the bigger picture is one of gloom and weakness.

    Read full article

    Apr 30 8:01 AM | Link | Comment!
  • Cyprus Debt Grows, EU Refuses Further Help

    Eurozone finance ministers will meet today in Dublin. Topping their discussion will be the Cyprus debt cost which has risen dramatically since the Cyprus bailout talks began. The new cost of the bailout crisis has risen from an original 17.5 billion euros to a new figure of 23 billion euros according to the Cypriot government.

    Cyprus which has now slackened the capital controls on their banking as of yesterday for local depositors will now have to find a further 3 billion euros themselves. This comes as the Finance Minister of Luxembourg Luc Freiden claims that the EU will not raise their agreed share of the bailout sum of 10 billion euros.

    Bianry Options Leader reports: The Cypriot government who are looking for alternatives to raised the extra capital have mentioned that they may have to sell some of their gold reserves. This new figure brings dramatic new challenges to the Cypriot government. Cypriot depositors who have savings over the 100,000 euro threshold will still be taxed on their savings. The banking sector in Cyprus is contracting heavily as a result of the debt and many thousands of jobs are being lost in the tiny nation. Capital controls which have been suffocating small local businesses that have been unable to pay suppliers have been loosened. Now daily transactions limit has been raised from 5000EUR to 20,000 EUR although the daily limit for withdrawing funds is still 300 EUR.

    Other matters for discussion at the EU meeting today include extending the repayment period for Ireland and Portugal. Also Slovenia will be discussed as their economic problems worsen.

    Apr 12 5:23 AM | Link | Comment!
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