I want to share my own personal view about this market.
I think non-exchange related (non-CBOE) binary options emerged a several years ago for mainly 2 reasons:
1. For USA citizens, being stuck to max 1:50 leverage on currencies in 2010 enforced by CFTC.
2. To attract new traders into the "easy money" world because the "ease of use" that binary options can provide to new traders without needing some starting capital, a good risk management & investing experience.
-- Nr 1. was rather quickly even more restricted a couple of years later, combined with the emergence of Cysec, to barring US citizens from trading such kind of options. This led to an even more restricted choice for them:
a. Go to unregulated brokers
b. Go to locally regulated brokers accepting US, there are not many.
*A personal note on regulation in general: it should ensure account seggregation and "in theory" withdrawals, although we see that it is not always the case. But more importantly regulation or not you are still playing with the broker's rules, meaning:
- borkers still can decide when they give you trading opportunities or not
- brokers can still decide to pay you shit like 50% rr or whatever they like
-- Nr 2. is more problematic as it impacts all traders around the world. But it is something that can be addressed by simply educating yourself into trading safer assets & derivatives types. On the downside probably more capital is required too. I can genuingly say this as I learnt to trade both bins and traditional products, like forex, stocks. I took a peek into futures but I feel it's not for me at the moment, since trading is far from being my main source of income and margin requirements are higher comparatively.
To come back to the general feeling about the binary options industing and the bans, I think it is due to many brokers behaving badly, doing bad business practices, which is now firing back at them, they did put nails in their own coffin by treating their customers badly and it gave a wrong image of the industry.
This forces more and more the binary options type of product to be linked with reputable brokers that provide also regular products, that's all. I wouldn't be surprised that sometime in the future standalone binary options brokers won't even exist anymore...