The Cyprus Securities and Exchange Commission, called CySEC, is the financial regulatory body of the Republic of Cyprus. You might come across brokers advertising they hold a CySEC license and wonder what it means. After Cyprus became a member of the European Union back in 2004, CySEC became part of the European MiFID regulation enabling all companies in Cyprus admission to the European markets. These events have caused a great amount of overseas companies registering in Cyprus because of the benefits involved with operating in this country.
Banc De Binary is according to CySEC one of three applicants in the binary options industry. It will be interesting to see which brokers that will get the license. The license makes it legal to operate in any country in the European Union according to our study.
We have seen a significant amount of forex brokers and lately binary options brokers obtaining a license from CySEC. The reason for this being that CySEC’s rules and regulations are less strict compared to other European financial regulators. As a company you are imposed less requirements although you still qualify under MiFID making you totally free to operate in all members stats of the European Union.
CySEC was formed in 2001 as part of the section 5 in the Cyprus Securities and Exchange Commission Law of 2001 as a public corporate body.
The purpose o CySEC is to carry out seven main tasks that mainly involves in supervising and controlling its licensees. To be licensed as a operator, a brokerage firm or consultancy firm means that all employees needs to be scrutinized and approved by CySEC. You can not have criminals or otherwise unfit people employed whilst holding the license.
CySEC is able to sanction and penalize firms holding a license if they do not live up to the demands that normally is written requests of various nature. Failing to comply with the rules ultimately means that you the license will be revoked. CySEC can carry out unannounced inspections of its licensees if it seems necessary to so.
We hope to see more brokers applying for license to improve the safety for our members of Fair Binary Options, when joining a broker from our list of secure binary options brokers.