Recently, many organizations and individuals in Vietnam have set up hundreds of binary options trading floors and introduced them as products of foreign financial technology, branding them as Blockchain technology applications in the revolution 4.0. These organizations and individuals have been using social media to promote their products, making investors think that these exchanges have been licensed in Vietnam.
According to A05, binary options trading is a form of financial investment, a transaction in which buyers will make predictions about the uptrend or downtrend of assets such as commodities, currencies, stocks, indices at the time of prediction.
If the prediction is correct, the investor will have a profit according to the rate which the floor offers; if the prediction is wrong, the investor will lose the entire amount for that trade.
The activities of binary options trading floors (Binary Option BO) in cyberspace show signs of illegal multi-level businesses, fraud, and appropriation of participants' assets.
According to the 2005 Ordinance on Foreign Exchange, only credit institutions are allowed to conduct foreign exchange business; therefore, binary options trading platforms operating in Vietnam are illegally operated.
Accordingly, most of these BO exchanges are licensed in foreign countries and introduced by foreign investors; in fact, these are set up and operated by Vietnamese individuals and organizations that have been using a multi-level marketing tool to attract and develop the number of participating investors; for example, Wefinex, Raidenbo, Bitono, Pocinex, Deniex, Remitex, Ares BO, Binanex, Fxtradingmarket, GardenBO, Hitoption...
Organizers of these platforms have committed to giving profits to investors, high commissions when attracting new investors. When they have raised a large amount of money, the floor owners will intervene in the price, adjust the win or lose for the purpose of appropriating investors' money, or crash the system to appropriate all investors' money. They have been using media effects on social networks, to attract investors’ attention.
Some people are self-introduced as expert reading orders, candles trimming hot girls, chiseling floors who have been emerged as high-income earners. However, A05 said that they are convincing investors to participate in the floors. A05 has warned that those participating in binary options trading floors are at risk of losing money. Additionally, participants will not be protected by the law if they use virtual currencies or tokens on these floors.
