Regarding Binary Options, Trade Minister Lutfi: Entering The 'Grey' Area, Criminal

Minister of Trade, M. Lutfi. (Photo: Doc. Ministry of Trade)

JAKARTA - Gambling under the guise of investment or binary options has become increasingly widespread in recent times. More and more people have suffered losses due to these investments. Therefore, Commission VI of the House of Representatives requested an explanation from the Minister of Trade Muhammad Lutfi regarding this matter.

Commission VI member Abdul Hakim Bafagih said the binary option scheme looks like an investment, but in reality it is gambling. He admitted that he was worried because the issue was being crowded on social media.

"This is a hot issue on social media. There is gambling in the form of trading, famous on social media with binary options. Talking about trading, even though it's gambling, then there is no underlying asset," he said during a Commission VI Working Meeting with the Minister of Trade, Monday, January 31.

According to Hakim, due to the rise of this phenomenon, many people have been deceived into losing money, especially when the lure is getting more intense with the alleged involvement of influencers as affiliates in binary options.

Because there are already many victims who have lost money, the Judge also questioned the supervision carried out by the Ministry of Trade through the Commodity Futures Trading Supervisory Agency or CoFTRA.

"There is a high possibility of manipulation. How is CoFTRA monitoring? There have been many victims, sir. There is no permit. The public must know," he said.

In response to this, the Minister of Trade Muhammad Lutfi said that the binary option mode is very gray. This is because usually financial transactions using securities should be supervised by the Financial Services Authority (OJK).

Meanwhile, Lutfi continued, if the transaction is related to commodities, CoFTRA will monitor it.

"They entered the gray area. When he made financial transactions with the securities at OJK, while he was with commodities he was at CoFTRA. They walked in the middle," he said.

Lutfi said binary option entities are dangerous for society. He explained that there is a ponzi scheme behind the practice of binary options.

Furthermore, Lutfi said binary options are criminal. According to him, law enforcement will arrest the people behind binary options.

"The permit is to go to a computer school but collect public funds. MLM uses funds. Use money. It's ponzi, criminal. We'll arrest all of them, that's over," he explained.