Following Knesset’s decision in October to ban the Binary Options sale abroad, Israeli Supreme Court Questions ISA Binary Options Ban Decision. The petition to review the ISA and Knesset ruling has been filed by the industry participants.
27 December, AtoZForex – Back in October, the Israeli Parliament has decided to pass a law that would ban local companies from selling Binary Options abroad. Previously, the officials have also passed the similar legislation in regards to the local investors. Yet, it appears that now Israeli Court is questioning the necessity of a ban.
Israeli Supreme Court Questions ISA Binary Options Ban Decision
In fact, if Israel was to ban Binary Options sale for overseas, this would appear as a total ban of all Binary Options in the country. The recent decision by the Israeli Supreme Court paints a somewhat different picture.
In the decision, the court asks the Israel Securities Authority (ISA) and the Knesset to elaborate on the reasons that the law banning Binary Options should not be withdrawn. The officials have time until 10 January to give a response.
The decision of the Court to reach out to the ISA and Knesset emerged as a result of a petition that has been filed by the services and technology provider Yukom and businessman Yossi Herzog. The petition reads:
“The ruling that prohibits the management of trading arenas (platforms, brokerages) in the field of binary options contradict the foundation of freedom of employment. The Israeli regulator has disqualified an entire industry, which is recognized and regulated by many countries in the world, by using a personally identified correlation between a financial industry and a negative campaign that has been created against Israel, as the basis for his claims.”
Israeli Binary Options Ban Opposing Petition
Yukom and Mr. Herzog have decided to act immediately after the ruling. The ban on Binary Options would come into force on January 26, 2018. According to Yukom, the law revokes human freedoms, which includes freedom of employment. Moreover, the entity claims that the law does not stand for the values of the State of Israel.
In addition, the company has stated that the ISA Binary Options Ban does not reflect the viewpoints of a general democratic government. The petitioners have also claimed that the ruling would cause the end of the industry as a whole. This would result in many residents leaving the country due to the insufficient income levels.
Following on this, the petition states that the new is extra-territorial in nature. According to the petition, the Israeli regulator is surpassing the bounds of its control. Additionally, the document highlighted that Binary Options is a financial instrument, while the discussion of the topic has been based on morality. This has affected the decision of ISA, the petition states.
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