The government is backing a bill barring the sale of binary options overseas by online trading firms based in Israel, a business that has drawn broad international criticism over allegations of illicit practices. Binary options involve placing bets on whether the value of a financial asset -- a currency, commodity or stock -- will rise or fall in a fixed time frame, sometimes as short as a minute. Israel banned the domestic sale of binary options in late 2016, becoming the first country in the world to do so. The new bill, introduced by Finance Minister Moshe Kahlon as an amendment to the Securities Law, was also approved by the Ministerial Committee on Legislation last week. The bill is expected to face its first Knesset reading in the next few weeks. The Israel Securities Authority said it expects the bill to be fast-tracked. The bill also prohibits any type of trading forum that sells to overseas clients, even if they do not offer binary options, without receiving a license from the country where clients reside. Breaking the law will be punishable by up to two years in prison, and if money laundering is involved, the punishment could reach 10 years in prison. "Beyond the severe economic harm to citizens around the world, marketers of binary options are increasingly causing reputational damage and inflaming anti-Semitism towards Jews and Israelis," ISA Director Shmuel Hauser said in a statement. Israeli regulators have received many complaints of losses suffered by binary option traders in various countries, the statement said. According to ISA data, more than 100 binary options operators are based in Israel. Investors have accused some of these Israeli companies of transferring money between accounts without approval and in some cases of preventing them from withdrawing their own funds. London-based lawyers said hundreds of their clients had been duped out of vast sums of money by some Israeli firms over the past few years.
Israel moves to ban controversial binary options industry
New bill aims to bar any type of trading or sales to overseas clients • Shady binary deals harmful to Israel's image, Securities Authority head says • In 2016, Israel became the first country in the world to ban domestic sale of binary options.
Load more...