The global financial system has fallen significantly during this year, resulting in a decline in investments as well. Given the 2008 financial crisis, a system that provides easy access for start-up traders had to be developed, and this led to the creation of binary choices for average investors as a new investment option. Although this investment has become popular in 2008, it was only accessed by banks, financial institutions and high net worth investors in over – the-counter (OTC) markets over the past several years. This investment has become increasingly popular.
The introduction of binary options was for most investors a revolution in the world of investment, which marked a major shift in financial markets. Binary options have started to expand at a remarkable speed since 2008 and are one of the most preferred investment modes. In addition, CBOE introduced binary options for all investors to take action on two S&P and CBOE Volatility Index index indexes, which were followed by a relatively easy way. SPX options have increased since 2008 to nearly sixty-five million contracts, expanding the financial market with colossal parameters.
How Binary Option is regulated in Europe .Also in Europe, binary options are trendy. Even many brokers come from the countries of the European Union. In most European countries, however, binary options are not legally enforced, but are not designated as illegal activity or investment. Cyprus was the first country in Europe to take the first steps to regulate and safeguard investors and brokers. Cyprus (CySEC) listed the next step in 2012, in which a binary option was placed on the list of financial instruments to strengthen the binary option’s law.
After Cyprus, the United Kingdom created separate legislation for the binary option, which also reflected the need to accept this method of trade for other EU states.
How Binary Option is regulated in Australia ? Although Australia is almost the leading binary options market, the legitimacy of this investment has become highly sensational in Australia. Binary options therefore are very regular in Australia and the regulatory body of the ASIC has taken different steps to regulate all brokers in Australia. Different authorities have taken action, given the rapid spread of binary options, and offered warnings of abuse in certain investment service provider companies. SEC and the CFTC issued an Investor Alerting (including the U.S. Security and Exchange Commission) to warn potential investors of misconduct by certain companies. There have been many unauthorized operators who have fraudulently undermined investment data in investment software according to this report. In addition, the SEC has reported in cooperation with CFTC that the main problem is the platforms where binary options can be traded. The placemats that only work on the website are not very reliable and do not comply with the US regulatory authorities. The majority of complaints therefore concern these platforms because their investors have often been misled. The European Union’s view of these actions is very skeptical of the binary options, as these tricks have deceived a large number of people.