Australian Securities and Investments Commission (ASIC)
ASIC bans the sale of binary options to retail clients (21-064MR)
ASIC made a product intervention order banning the issue and distribution of binary options to retail clients, taking effect on 3 May 2021.
This page summarises what the Australian Securities and Investments Commission (ASIC) has published about binary options: the 2021 product intervention order, its 2022 extension and its scam-reporting guidance. It does not assess any firm or say whether an individual could face liability.
The 2021 Product Intervention Order
In media release 21-064MR, ASIC said: "ASIC has made a product intervention order banning the issue and distribution of binary options to retail clients." It added: "The ban will take effect from Monday 3 May 2021." ASIC also said: "The order will remain in force for 18 months, after which it may be extended or made permanent."
ASIC gave three reasons. The first was the all-or-nothing payoff, where one of the two possible outcomes is that the retail client loses the whole amount invested. The second was short contract duration, with the average contract duration for binary options traded with one provider under six minutes. The third was negative expected returns, meaning the present value of the expected payoff is lower than the initial investment.
ASIC stated: "Civil and criminal penalties apply to contraventions of the product intervention order." For the Australian overview, see our guide to binary options in Australia.
The 2022 Extension
In media release 22-118MR, ASIC referred to Consultation Paper 362 on extending the binary options product intervention order. It said that in the 13 months before the ban, between 74% and 77% of active retail clients lost money trading binary options.
The explanatory statement to ASIC Corporations (Product Intervention Order Extension–Binary Options) Instrument 2022/779 says the instrument is a declaration that the 2021 order remains in force until it is revoked. The explanatory statement adds that, if the 2021 order is not revoked, it will sunset on 1 October 2031 under the Legislation Act 2003.
Reporting Investment Scams
ASIC's "Scams" page, dated 20 April 2026, says: "Report all scams to Scamwatch, including investment scams." It also says: "Visit Moneysmart for more information about reporting investment scams." The page links to ASIC's investment scam alerts. For general reporting steps, see how to report a binary options scam.
Frequently Asked Questions
What did ASIC's product intervention order ban?
ASIC said: "ASIC has made a product intervention order banning the issue and distribution of binary options to retail clients."
Until when does the ASIC order apply?
The explanatory statement to Instrument 2022/779 says the order remains in force until it is revoked and, if it is not revoked, it will sunset on 1 October 2031.
What does ASIC say about reporting investment scams?
ASIC's Scams page says: "Report all scams to Scamwatch, including investment scams."
Does this page address whether an individual could face liability?
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
Sources and Official References
- ASIC: ASIC bans the sale of binary options to retail clients (media release 21-064MR)
- ASIC: Proposal to extend the binary options product intervention order (media release 22-118MR)
- Explanatory statement: ASIC Corporations (Product Intervention Order Extension–Binary Options) Instrument 2022/779
- ASIC: Scams (20 April 2026)
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.