Today binary options are regulated by the UK’s Gambling Commission, however this regulation applies only if the broker has serverd located in the UK.
If the servers and equipment are located offshore, the binary options brokers will not be regulated either by the Gambling Commission or by FCA.
Since most of the European Union (EU) countries consider binary options to be a financial, rather than a gambling product.
Under EU financial services law, brokers which are legally established and authorised in one EU member country are entitled to do business in any other EEA country once certain procedural safeguards are met.
This means that although the FCA does not currently regulate binary options, brokers offering binary options trading which operate as financial services firms in other EU countries, are able to do business in the UK.