Cyprus’s domestic financial regulator CySEC has released a list announcing the firms which have been granted CySEC licence between June and September of this year. During this period a total of 12 firms have been granted licences, with the majority of these firms being Binary Option brokers. During the first few months of 2013, a total of 17 firms gained new CySEC licences and this recent announcement shows that the island of Cyprus remains a popular destination for both Forex and Binary Option brokerages.
The notable new licensees include:
- YTF Trade Limited.
- Rodeler Limited – Binary Options firm currently trading as ZoneOptions.
- FT Traderworld Ltd – Binary Options brand currently trading as TraderWorld.
- Cbay Financial Services Ltd – The company behind the well known Binary Options brand 24Options.
- Trendoks Ltd – Multi-platform Forex brokerage who offer cTrader, MT4 & 5 as well as Margin Pro.
- T.B.S.F Best Strategy Finance Limited. – The company behind the well known Binary Options brand Cedar Finance.
- B.O Tradefinancials Ltd. – Binary Options broker operating under the trading name of OptionFair.
Binary Options Regulation: Cyprus and Malta
Cyprus and Malta are currently the only two EU countries to regulate off-exchange Binary Options, despite the fact the European Commissions opinion that off-exchange Binary Options are a financial instrument and thus fall under MiFID. Recently European countries have begun cracking down on the operations of unregulated Binary Options firms with Italian Courts IP blocking a number of firms, these moves have led to increasing number firms seeking to be regulated within the European Union.
In 2012 Cyprus’s CySEC became the first regulator to oversee Binary Options and has become the prime destination for Binary Option brokers seeking to become regulated. Cyprus has become the popular destination for financial services firms due to the countries membership of the European Union and the favourable tax situation. This latest announcement from CySEC demonstrates that the Island is likely to remain one of the most popular destination for both Forex and Binary Option brokerages.
More recently Malta’s MFSA followed the lead of CySEC and became the second EU regulator to classify off-exchange Binary Options as a financial instrument. Prior to this decision regulation of Binary Option firms was overseen by the countries Lottery and Gaming Commission. However Binary Option firms have been far more keen on Cyprus as an operating base, with firms seem to be reluctant to base their operations in Malta.
Whether other European Regulators decide to follow suit and decide to regulate Binary Options remains to be seen.