Is Binary Options Trading Legal in Poland? (KNF Status)

The Polish Financial Supervision Authority (KNF) adopted a decision on 25 June 2019 prohibiting the marketing, distribution and sale of binary options to retail clients. In force from 2 July 2019, the decision sets out specific exceptions. The decision text we reviewed contains no end date.

What the Rules Say

The Polish Financial Supervision Authority (KNF) issued a decision on 25 June 2019 (reference DAS.456.1.2019) prohibiting the marketing, distribution or sale of binary options to retail clients or potential retail clients.

The legal basis stated in the decision is Article 42(1)(a) of Regulation (EU) No 600/2014 and Article 23h(1) and (2) of the Act of 29 July 2005 on capital market supervision.

The decision entered into force on 2 July 2019.

Marketing under the decision includes disseminating or directing information to retail or potential retail clients, advertising, or promoting.

The decision text we reviewed contains no end date.

Scope and Exceptions

KNF's decision provides that the prohibition does not apply to:

1. A binary option for which the payout is at least equal to the total payment made by the retail client, including commissions, transaction fees and other related costs.
2. A binary option that jointly meets three conditions:
   • The period from issue to maturity is at least 90 calendar days.
   • A prospectus prepared and approved under Directive 2003/71/EC is publicly available.
   • The option does not expose the provider to market risk during its term, and neither the provider nor any entity in its group makes a profit or loss on the option other than previously disclosed commissions, transaction fees or other related costs.

How to Check a Firm

Check the official register of the national regulator, the Polish Financial Supervision Authority (KNF).

If a firm does not appear on the relevant register, treat that as a reason to stop and check further before sending money.

See our EU page for the ESMA background and Germany as another national example.

Frequently Asked Questions

What does the KNF decision prohibit regarding binary options?

KNF's decision of 25 June 2019 prohibits the marketing, distribution or sale of binary options to retail clients or potential retail clients from 2 July 2019, covering advertising, promotion, and disseminating information.

Does the Polish decision specify an expiration date?

The decision text we reviewed contains no end date.

What exceptions exist under the KNF rules?

The ban excludes binary options where the payout is at least equal to the total payment by the retail client including fees, or products that jointly meet three conditions: maturity of at least 90 calendar days, an approved publicly available prospectus under Directive 2003/71/EC, and zero provider market risk with no group profits or losses beyond disclosed costs.

Does this page address individual liability?

This page summarises what the regulators' published rules say. It does not address whether an individual could face liability. Seek independent legal advice.

Sources and Official References

• KNF Decision DAS.456.1.2019 (25 June 2019): https://dziennikurzedowy.knf.gov.pl/eli/DU_KNF/2019/18/ogl/pol/pdf

This page summarises what the regulators' published rules say. It does not address whether an individual could face liability. Seek independent legal advice.