Jakarta, CNBC Indonesia – The name Binomo has been widely discussed and viral on social media, due to shouts from users who feel cheated by an application that markets itself as an investment platform, but is actually more suitable to be called a gambling application.
Binomo is a company that provides a platform for users to do binary option who has a system for gambling, doesn’t it trading let alone investment.
Although repeatedly blocked by regulators (OJK and CoFTRA), but due to limited public investment knowledge and endorsement who come from various circles, including artists and influence On various social media platforms, every time Binomo is closed, it reappears like a phoenix rising from the ashes.
Some of the victims of this ‘scam investment’ shouted that the affiliator Binomo to be arrested and prosecuted for marketing a gambling platform which is clearly illegal in Indonesia.
Why is Binomo Gambling?
The difference between gambling and trading and investment is actually very clear. In trading and investment is there underlying asset which have traded value.
As for the loss or profit, the amount depends on capital, asset price movements and whether or not there are any leverage used.
But in the case of Binomo and the platform binary option On the other hand, what is actually provided on the platform is not a financial asset to be traded, but an online gambling table.
Like Casinos, people who claim to be ‘trading‘ at Binomo et al are only those who guess whether the price of an asset will go up or down while Binomo et al act as the ‘bookie’.
These guesses are certainly reminiscent of one of the popular gambling games in casinos, namely roulette. In the roulette wheel, there are numbers 1-36 that you can choose to bet your money on where half are red and half are black.
The label ‘investment fraud’ is not only given by domestic regulators, the US Federal Bureau of Investigation (FBI) is also investigating fraud related binary option around the world, and the Israeli police have tied the industry to criminal syndicates.
While the European Securities and Markets Authority (ESMA) has banned trading binary option retail.
The FBI estimates that the practice by scammers this has stolen US$ 10 billion or equivalent to Rp. 143.5 trillion (exchange rate of Rp. 14,350/US$) every year around the world.
The use of the names of famous people like Richard Branson to encourage people to buy fake “investments” is becoming more frequent and increasing.
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