Regulation

Regulatory authorities are placed between a rock and a hard place over
the regulation of binary options exchanges. The nature of the risk involved
means that these exchanges will distribute binary options via the internet
in much the same way as eBay offers everything but bets via the internet.
If regulation in any one jurisdiction becomes overburdensome then the
exchange will up sticks and go offshore.
It is clear that the ability to distribute the product cheaply over the internet
will be a major advantage to the exchange and the binary option
user/trader. The combination of a homogenous, limited-risk instrument
with zero credit facility ensures zero account defaults.