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The sites selling binary options cause serious harm to Israels image, encourage anti-Semitism and have hurt Israels foreign relations, Shmuel Hauser, chairman of the Israel Securities Authority, said following the vote.
The law will enable the securities authority to act in an unprecedented manner against those entities operating from Israel vis-a-vis clients abroad, by imposing civilian and criminal sanctions including imprisonment, he said.
The amendment to the countrys securities law received initial approval in parliament in June and will take effect in about three months. The law will enable the Finance Ministry to impose bans in the future on other financial assets if they are sold in a harmful manner, the securities authority said.