CySEC Licenses 17 Binary Brokers in H1 2013
13th of July 2013
A total of 17 binary options brokers were licensed during the first half of 2013 in Cyprus by the Cyprus Securities and Exchange Commission (CySEC). This was achieved despite the recent Cypriot banking crisis.
The Cyprus Securities and Exchange Commission just released a new list of companies that were licensed in the first half of 2013 to offer binary options trading services in the country. The report revealed that a total of 17 companies managed to get a license during this period.
These companies managed to get their licenses despite the recent Cypriot banking crisis that left many people with the impression that the future of binary options regulated in Cyprus are over. However, as it turned out this event had little effect on the binary trading business.
The CySEC, which is the regulator of binary options in Cyprus announced that more companies are expected to apply for a license during the second half of the year. This further reinforces the previous statement that the banking crisis had little effect on the binary options business.
In March 2013 the Cypriot government announced that it would impose a levy on all bank accounts in the country. Later it was decided that this would only be valid on accounts that contained more than EUR 100,000 in deposits.
After this, a lot of binary options traders were concerned that their money deposited at Cypriot brokers will be taxed by the state. However, this did not happen since pretty much all binary options brokers that are licensed in the country have their bank accounts in other countries.
Most brokers revealed and have proven that they only maintain as much money in Cyprus as it’s necessary in order to pay for local expenses such as staff wages, rent and licensing fees. The funds that were deposited by clients and traders are kept in separate accounts in other countries such as the United Kingdom and Switzerland.
So, all in all, the Cyprus binary trading industry did not go down after the banking crisis like many so-called experts on other websites have predicted. We actually were pretty much the only ones who did not join the “let’s bash Cyprus” bandwagon when the banking crisis took place.
All brokers that were licensed in the country are doing just fine, continuing to operate without any problems at all. And despite being a small and “unimportant” country, Cyprus also manages to properly regulate the companies that have applied for a binary options license.