Moldova will ban the marketing and sale to the general public of speculative instruments such as binary options and CFDs (contracts for difference)
This is provided for by relevant amendments to the Capital Market Law and the Criminal Code, passed by the parliament in final reading to consolidate measures to protect investments in derivative financial instruments. According to Radu Marian, chairman of the parliamentary committee on economy, budget, and finance, the aim is to protect people's savings from dangerous financial traps. He said that the adopted bill will better protect citizens from financial losses by prohibiting the marketing, distribution, or sale of speculative instruments such as binary options and CFDs to the general public. Radu Marian explained that when someone uses these transactions, they are not investing in the asset (shares, currency, etc.), but are in fact placing a bet—it either increases or decreases in value. If the person guesses correctly, they win money; if not, they lose everything. According to the provisions of the law, only organizations and brokers licensed by the National Financial Market Commission (CNPF) will be able to carry out such transactions. These transactions can become even more dangerous if leverage is used. If the leverage is, for example, x10, a person can lose 10 times more than the amount invested. The chairman of the parliamentary committee on economy, budget, and finance noted that in recent years, hundreds of citizens have been attracted by aggressive advertising promising quick profits through risky transactions, often without understanding what they are getting into. Because of these deals, people often lose all their savings, while those who sold them these services profit from their losses. European statistics show that 80% of people who invest in CFDs lose money. “In addition, through this bill, we are harmonizing national legislation with EU and US legislation, where such instruments are strictly regulated and prohibited for the general public. Only licensed professionals can use them,” said Radu Marian. According to the adopted amendments, the marketing, distribution, or sale in Moldova of derivative financial instruments such as binary options, which are derivative financial instruments with a cash settlement, where the payment of a fixed amount of money depends on the occurrence of one or more events and the price, level, or value of the underlying asset on the maturity date of the derivative financial instrument, is prohibited. These provisions do not apply to derivative financial instruments admitted to trading on a regulated market or within the multilateral trading system (MTS) managed by an investment company or market operator. Amendments to the Criminal Code approved by Parliament provide for specific penalties in the form of fines or imprisonment for the marketing and/or distribution in Moldova of derivative financial instruments that are prohibited or restricted by law. // 03.07.2025 – InfoMarket.
