When it comes to binary options, though, this country is still very much in the phase of discovering this exciting online investment. This should change soon, since there are no restrictions for Chinese citizens who would want to include this derivative in their portfolio.
Financial Restrictions in China
Although thought to be a very restrictive and old fashioned, the Chinese banking system, and within it the regulation over financial investments, is modern, well organized and constantly adapting to new realities.
Nonetheless, no matter how orderly they might be, the Chinese government and regulatory bodies cannot possibly oversee the activities of one billion individuals. The habit of bending certain restrictions on overseas investments by Chinese nationals is common.
With regards to binary options, this is not even necessary. Any citizen is allowed to transfer the equivalent of up to US$ 50,000 a year outside of the country. This is a large amount for any binary trader, and therefore a nonissue for those who wish to deposit money with a binary options broker.
Binary options in China
In spite of being such a powerful economy and even hosting the third largest stock exchange in the world, China has been overlooked by most binary option brokers. Only Anyoption, the largest broker worldwide, provides a trading platform in Chinese, as well as information and access for Chinese clients.
As a result, the binary market in China is extremely small and underdeveloped. In principle, brokers would not encounter in China any legal difficulty or juridical issue that is different from other countries where binary brokers operate.
Obviously, no regulation for this derivative exists in China, and thus a citizen purchasing digital options would not be treated any differently by Chinese law if he or she chose to buy a Gucci bag instead. With the limit set at 50,000, any minor credit card use would be disregarded.
Growth of Binary field in China
Using the forex market as an indicator, it is safe to say that the potential for growth for binary trading in China is phenomenal. The number of Chinese Forex traders has grown consistently, and today there are roughly 50,000 customer of this investment tool in China.
Since binary options is easier, demands less know how and is extremely fast paced and dynamic, there is no reason to believe it can match or surpass this number in the next few years.
Chinese Financial Laws and regulations
Although Banking and other economical sectors in China are solely or largely state owned, modernization has been a key strategy, which has enabled foreign banks to slowly leave their mark. Today these banks can operate in all major Chinese cities, and within the end of next year, no further restrictions on location will be imposed.
While regulation is historically strict and even severe, it has seen a mellowing in the last few years, with loans and mortgages being more common and easy to get. Furthermore, while restrictions exist and laws are intricate, enforcement is very complicated.
Chinese citizens are constantly finding ways to circumvent the more restrictive laws, especially those related to private Chinese investment overseas. It is common for the wealthier to transfer funds using relatives and friends, a practice that is overlooked by authorities.
Are binary options legal in China – Summary
Binary trading is legal for both Chinese citizens and broker seeking to expand to this enormous and powerful country.
Binary options are not yet popular in China, largely due to the lack of effort by brokers so far.
Since there are currently no real restrictions on either companies which offer options online or Chinese nationals who wish to invest in them, the binary market should grow substantially, and soon.
The Chinese regulatory bodies have not had the need to address binary trading, and once they do, it seems improbable than any limits will be imposed or regulation offered.
If you have Chinese citizenship and wish to open an account to trade binary options, go for it. Binary options are legal in China and those high yields are waiting for you.