ASIC Extends The Ban on Binary Options Until October 2031

The restriction will make it illegal for regulated brokers to provide binary options to regular traders.

It first went into effect on May 3, 2021.

On Monday, the Australian Securities and Investments Commission (ASIC) affirmed the extension of the prohibition on the issuing and distribution of binary options to Australian retail consumers until October 1, 2031.

The product intervention order was issued more than a month before the Australian Securities and Investments Commission's (ASIC) initial ruling for the ban, which went into force for 18 months on May 3, 2021.

Binary options are OTC products that enable investors to bet on the occurrence or non-occurrence of an event within a certain period. These gadgets are easy to learn yet very dangerous.

According to ASIC, its first product intervention order prohibiting retail binary options occurred after regulatory assessments between 2017 and 2019 revealed that around 80% of traders were losing money.

Global Position on Binary Options

Most other worldwide markets have outlawed binary options products. Binary options have also been prohibited in the United Kingdom, the European Union, Israel, and numerous other nations owing to the hazards and pervasive fraud associated with the instruments. Surprisingly, the retail distribution of binary options is permitted in the United States. The CME Group will also issue binary option-structured event contracts in the coming weeks.

Meanwhile, ASIC is preparing to tighten laws governing other retail OTC marketplaces. Furthermore, it severely limited the maximum leverage that CFD brokers may give to ordinary traders.

About ASIC

The Australian Securities and Investments Commission (ASIC) is a non-partisan Australian government agency that serves as the country's business regulator. It was formed on July 1, 1998, in response to the Wallis Inquiry's recommendations. The purpose of ASIC is to enforce and regulate corporate and financial services laws to safeguard Australian consumers, investors, and creditors. The Australian Securities and Investments Commission Act, 2001 established ASIC's jurisdiction and scope.

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