An offshore binary options firms has violated Australian law, the Australian Securities and Investments Commission (ASIC) reports.
The regulator reported that a federal court has ruled that a binary options trading firm based in the Marshall Islands, One Tech Media Ltd. (OTML), breached Australian law by trading without registration, issuing binary options without making disclosure and misleading investors.
“Justice Davies found that OTML engaged in unconscionable conduct in relation to a financial product,” the ASIC said.
“Her Honour also found that OTML misled and deceived Australian customers by making several false or misleading statements and representations, and conducted itself dishonestly,” the ASIC added.
The regulator will seek civil penalties against the firm at a future court hearing.
It also said that the decision helps clarify a murky aspect of the law.
“ASIC’s litigation has provided clarity to otherwise grey areas of the law. This is ultimately to the benefit of both ASIC, industry and most importantly, consumers,” ASIC commissioner Danielle Press said in a statement.