Binary Options Ban in Australia Will Last Till October 2031, ASIC Mandates

Binary Options Ban in Australia Will Last Till October 2031, ASIC Mandates

The Australian financial overseer ASIC has officially extended the ban on binary options, their distribution, and their issuance in the country. All retail Australian users are prohibited from partaking in binary options trading until 1 October 2031.

Defined as over-the-counter, or OTC, products allowing users to speculate on the rise or/and fall of a given asset’s price in a given time frame. Binary options are notoriously easy to understand and start trading with, but are surprisingly risky and all the more unpredictable.

ASIC disclosed that it originally banned these products after it estimated that around 80 percent of all local traders have lost or were in the process of losing money from them. The estimate was calculated on the basis of numbers in taken between 2017 and 2019.

It was found that around AU$14 million had been lost to binary options, while only AU$1.7 million was revealed as profit on profit-making accounts.

The intervention by ASIC comes only a month before the original ban date was about to expire, which came into effect on 3 May 2021, and was supposed to last for 18 months.

These products and related services are banned in most countries around the world, from nations in the European Union, to Israel, to the UK, and all over. The main concerns are the inherent risks and the fraudulent binary options schemes that are easily fallen for.

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