The mobile app store scene is getting some 300 less apps. This is because both Google and Apple have been removing binary trading applications after the ASIC (Australian Securities & Investments Commission) told them to look into issues of fraud that involved unlicensed operators. It seems the two big companies responded to the request and deleted those apps that encouraged mobile consumers to bet on currencies or shares that were actually risky.
The idea isn’t exactly illegal but there has been a proliferation of unlicensed products on mobile that can’t be easily regulated. For the past few years, there have been apps making “outrageous” claims. ASIC simply wanted to regulate the industry and make sure developers are following guidelines especially in facilitating binary options trading.
According to ASIC, about 80 percent of the 330 related apps didn’t have any warnings about the risk. This posed not only risks but have also caused some people wasting their money and investments away. Believe it or not, there have been cases where people withdrew cash or made winning trades using a mobile app. Sadly, some of them would lose.
In this regard, it is good that the Australian government agency has looked into this issue because there were consumers losing money because of misrepresentation. Hopefully, there will be no more or at least fewer cases of such from happening.
VIA: Bloomberg
SOURCE: ASIC
