DE - National prohibition of binary options for retail clients in Germany
On 29 November 2018, the German Federal Financial Supervisory Authority (BaFin) has published on Bafin's website the draft version of a general administrative act that will prohibit the marketing, distribution and sale of binary options to retail clients at a national level.
BaFin sees risks and thus considerable investor protection concerns in that binary options are complex and lack transparency. The marketing, distribution and sale of binary options to retail clients is already prohibited in the European Union due to a temporary measure imposed by the European Securities and Markets Authority (ESMA). BaFin’s envisaged general administrative act will maintain this prohibition once ESMA’s measure expires.