Cyprus Regulator Cracks Down on Binary Options Businesses

In a bid to enhance transparency and protect investors, Cyprus’s Securities and Exchange Commission (CySEC) has implemented significant changes to its registration and regulation processes for binary options businesses operating in the country.

New Measures Enhance Transparency and Protection

The new measures aim to increase transparency by requiring registered entities to provide more detailed information about their activities and services. This includes stricter guidelines on company names and branding to prevent misleading investors. Additionally, CySEC has increased fines for non-compliance with regulations, suspended licenses, and revoked those of firms that fail to meet the required standards.

Improved Investor Complaint Handling

The regulator has also established a new structure to handle investor complaints more efficiently.

CIF Certification Requirements

To operate in Cyprus, binary options businesses must employ staff who hold relevant qualifications. Under CySEC’s guidelines, investment firm employees providing investment services or carrying out investment activities must be registered on the public register of certified persons after passing exams. Staff must also meet minimum academic and professional requirements set by CySEC, which include knowledge of local and European legal and regulatory frameworks, as well as risk management, money laundering prevention, and economics.

The following certificates are offered by CySEC:

• Basic certificate
• Advanced certificate
• AML (Anti-Money Laundering) compliance officer

Increased Regulatory Powers

In recent years, CySEC has demonstrated its commitment to protecting investors by increasing its regulatory powers. In 2019, the regulator gained new authorities to impose national product intervention measures and to require binary options call centers to relocate to Cyprus.

Investor Protection a Priority

CySEC’s efforts aim to create a credible securities market that fosters growth while ensuring investor protection. The regulator has received support from industry experts, who emphasize the importance of robust regulation in the binary options space.

Conclusion

With these changes, CySEC is sending a clear message: it will not tolerate non-compliance and will take swift action to protect investors in Cyprus’s binary options market.

References

• FinanceFeeds
• Financial Times
• Times of Israel
• CySEC Circular on Product Intervention Measures
• naked capitalism
• Time