Binary options in South Asia: what the law actually says

India, Pakistan, Bangladesh, Sri Lanka and Nepal all leave binary options outside any protective regulatory framework, each in a different way. This page sets out what each regulator has actually published, with links, and where we could not verify something.

Status by country

Pakistan: what the SECP and the State Bank actually published

• SECP, 9 April 2025. The press release names Qxbroker (Quotex), reachable at qxbroker.com and through Google Play, as "NOT authorized to operate in Pakistan". It covers platforms offering "foreign exchange (forex), securities, commodities, options, and other speculative instruments". Its advice: do not open accounts, deposit funds or share personal or financial information, and check a platform's status on secp.gov.pk.
• SECP, 28 November 2025. Another public warning tells people to deal only with SECP-licensed securities and futures brokers, and to use the broker lists published by the Pakistan Stock Exchange and the Pakistan Mercantile Exchange.
• State Bank of Pakistan, 18 March 2022. EPD Circular Letter No. 08 of 2022 names OctaFX and Easy Forex as examples of illegal offshore forex, margin and CFD platforms. It instructs authorised dealers (banks) to warn customers, monitor transactions and block payments to such platforms through all channels, under the Foreign Exchange Regulation Act, 1947.
• NCCIA, August 2025. The National Cyber Crime Investigation Agency said it had asked the PTA to block 46 apps it described as illegal betting, forex and binary trading apps (ProPakistani report). The apps named in that report were betting apps, so we do not claim that any specific binary options broker was on that list.

Correction: an earlier version of this page said the SECP "classified binary options as gambling in 2024". We could not find that decision in the SECP's published press releases, so we have removed it. Pakistan's position rests on the documents listed above.

Bangladesh: forex law, not a grey zone

We used to call Bangladesh a "grey zone". That understated the position. Bangladesh Bank's public warning, reproduced by commercial banks such as NCC Bank, says that "purchasing or selling foreign currency through any individual or organization without a license from Bangladesh Bank (Authorized Dealers/Money Changers) is illegal" under the Foreign Exchange Regulation Act, 1947, and calls it a punishable offence. The central bank has held this line for a long time: in January 2012 it warned that online currency trading by unauthorised people and organisations is illegal, and said it would act against those who advertise it. The BSEC regulates the securities market. We found no BSEC framework that licenses binary options, so no local body can help if an offshore platform keeps your money.

Sri Lanka: explicit ban on residents' forex trading

The Central Bank of Sri Lanka's notice on unauthorised foreign exchange trading (October 2019) is the most direct text in the region. Under the Foreign Exchange Act, No. 12 of 2017, only licensed commercial banks acting as authorised dealers may deal in foreign exchange. Any other person resident in Sri Lanka "is not permitted to undertake forex trading transactions or remit funds outside Sri Lanka for such transactions and receive income or profit earned from forex trading". Binary options on currency pairs are funded and paid out in exactly that way.

Nepal: what we could and could not verify

We could not find a Nepal Rastra Bank or SEBON notice that names binary options, so we will not tell you they are "banned" or "allowed". What we could verify is a 2019 NRB notice stating that using payment systems linked directly to foreign payment operators without NRB authorisation is illegal under the Foreign Exchange (Regulation) Act. Funding an offshore trading account is an outbound foreign-currency payment, so the same law is the one to check. Before you deposit, ask the NRB or a Nepali lawyer. Do not rely on an affiliate blog.

The common thread: foreign-exchange law, not gambling law

In all five countries the legal hook is the same. The platform is offshore, so your deposit is a cross-border foreign-currency transaction, and each country controls those tightly:

This is why the practical risks look the same everywhere: banks are told to block payments, deposits end up going through personal accounts and agents, and no local regulator can order an offshore platform to release a withdrawal.

Before you send money anywhere: a five-point check

1. Search the brand, not just the domain, on your regulator's warning list. Quotex appears as quotex.com on the RBI list and as qxbroker.com in the SECP warning. Mirror domains are the same company.
2. Look for the licence on the regulator's own site (SEBI, SECP/PSX/PMEX, CBSL, NRB), not in a screenshot on the broker's page.
3. Check where the deposit goes. If the payment page shows an individual's account or wallet, not a licensed institution, stop. That is the pattern the regulators above describe.
4. Do the payout maths. Break-even win rate = 1 / (1 + payout): 54.1% at an 85% payout, 55.6% at 80%, 58.8% at 70%. At 80% and a 55% win rate, the expected result per $10 trade is 0.55 × 8 − 0.45 × 10 = −$0.10. You lose slowly, even while winning more than half your trades.
5. Test on demo first. Our strategy tests found the best setups at roughly 57–61% out-of-sample, and most at or below break-even. 70% claims did not survive testing.

Why 'unregulated' is the real risk

The legal question gets the headlines, but the practical risk is simpler: with an unregulated offshore platform there is no regulator to complain to. If withdrawals are delayed, the account is frozen or terms change overnight, you have no local mechanism to recover funds. That is true in all three countries above, regardless of the exact legal wording.

What you can do safely

• Demo first, always — free, legal everywhere, and where any honest strategy test begins.
• Prefer regulated markets in your own country — in India, SEBI-registered brokers and NSE/BSE derivatives.
• Learn the mechanics with open code — our free bot lets you study indicators, backtests and risk management without depositing anywhere.

FAQ

Are binary options legal in Bangladesh?
Not through any licensed channel. Bangladesh Bank says buying or selling foreign currency through anyone it has not licensed is illegal under the Foreign Exchange Regulation Act, 1947, and we found no BSEC framework that licenses binary options. There is no local protection if a platform refuses a withdrawal.

Are binary options legal in Pakistan?
No licensed platform offers them. On 9 April 2025 the SECP said Qxbroker (Quotex) is not authorised to operate in Pakistan, and the State Bank's EPD Circular Letter 08 of 2022 tells banks to block payments to offshore forex platforms under FERA 1947. We could not verify the often-repeated claim of a 2024 SECP “gambling” decision.

Is India different?
India is the most documented case: Quotex, IQ Option, Binomo, Olymp Trade and Pocket Option are named on the RBI Alert List, and SEBI licenses none of them. See our dedicated page on India.

Can I use the free bot in these countries?
On demo accounts, for learning and backtesting — yes, everywhere. For real-money trading, follow your local law; we do not encourage trading on unauthorised platforms.

Is Quotex legal in Pakistan?
No. The SECP's press release of 9 April 2025 names Qxbroker (Quotex) and says it is not authorised to operate in Pakistan. It advises people not to open accounts or deposit funds.

Is forex or binary trading legal in Sri Lanka?
For residents, no. A Central Bank of Sri Lanka notice from October 2019 says residents are not permitted to undertake forex trading or remit funds abroad for it, under the Foreign Exchange Act, No. 12 of 2017.

Are binary options legal in Nepal?
We could not find an NRB or SEBON notice that names binary options. Funding an offshore account is a foreign-currency payment governed by the Foreign Exchange (Regulation) Act, and a 2019 NRB notice calls payments through unauthorised foreign payment systems illegal. Ask the NRB or a lawyer before depositing.

Related: Is Quotex legal in India? · Indonesia: what BAPPEBTI decided · 13 strategies tested on real data · Demo account guide

→ See the full country-by-country legality table

⚠️ This page is general information, not legal, tax or investment advice. Regulations change — verify the current RBI Alert List, SEBI, SECP, Bangladesh Bank, CBSL or NRB publications, and consult a qualified professional (CA/lawyer) about your situation. Binary options carry a high risk of losing all your capital.