Regulation of Binary Options in Cyprus
Cyprus was one of the first European Union countries to regulate financial betting. The country decided to regulate binary options knowing that it would attract a lot of brokers as a consequence. This way, most of the brokers operating would be paying taxes in Cyprus.
Obviously, Cyprus couldn’t have just implemented whatever regulations it wanted. The binary options trading laws of this country naturally have to be in line with the laws and regulations of the European Union as well. Cyprus would have risked infringement procedures if it had implemented laws that are not in conformity with EU regulations.
This is why the claim that Cyprus binary options laws and inadequate are false. Cyprus may be a small and “insignificant” country but it is a member of the European Union. As such, it’s obliged to implement the same kinds of financial service laws as other member states.
In fact, if you look at the online investing laws of this country and compare them with those of the UK you will realize that they are more or less the same. This is because both countries’ laws were built taking in consideration European Union regulations.
In fact, the binary options licenses issued in the country are actually valid in the UK as well!
The Cyprus Securities and Exchange Commission
Financial investing is regulated in Cyprus by the Cyprus Securities and Exchanges Commission (CySEC). This organization is a government agency that has the power to implement new regulations and rules that CySEC licensed binary options brokers are brokers interested in acquiring a license will have to follow.
The CySEC also has the role of supervising all the licensed brokers. If a broker breaks the country’s and the European Union’s binary options laws, CySEC will intervene and take appropriate measures to remedy the problem and punish the offender.
The punishments issued by the CySEC range based on the severity of the offence. Most of the time the regulator requires brokers to implement measures that will make sure that the committed offense will never happen again along with imposing a heavy fine.
However, in cases of serious fraud and breach of regulations, the CySEC may as well remove the license issued to a broker. And once a broker loses its license, no trader in the world will trust it anymore.
Contrary to popular belief, CySEC is a very strict regulator.
Are Cyprus binary options laws adequate?
Yes, the financial betting laws of the country are adequate in protecting traders no matter where they live. You should not let yourself influenced by the fact that Cyprus is an “insignificant” country and therefore its regulations cannot be trusted.
Cyprus isn’t just a remote island. It’s a full member of the European Union that is forced to respect all the rules and regulations of the EU. The European Union is extremely strict with countries that don’t follow the law. The country might even find itself expelled from the EU if it would break EU law.
Financial situation of Cyprus brokers
Due to the 2013 Cyprus financial and banking situation many traders are concerned about their deposited money at Cyprus binary options platforms. Since the country’s government implemented a measure that imposed a 40% haircut on all bank deposits in the country, traders fear that their money can also be seized at any moment.
However, this is not the case. Most – if not all – Cypriot financial service providers keep their money in accounts in different countries such as the UK, Luxembourg and Switzerland. This is common knowledge that’s also enforced by empirical evidence.
The best evidence that shows that financial brokers in this country keep their money abroad is the fact that no money was lost or seized from brokers whatsoever after the Cypriot government implemented the bank haircut.
So, yes, your money is definitely safe at Cyprus brokers.
Cyprus Binary Options Brokers
The majority of the financial service providers operating today on the market are from Cyprus so there is a plenty of choice for traders. However, not all brokers offer really great services and run on top-notch online trading technology.
In order to help you find the best Cyprus binary options brokers we have created the toplist that you see on the top of this page. All the brokers listed there obviously have a valid license issued in the country and as such follow all the rules of the country and of the European Union.
If you live in pretty much any country on the globe, then you should choose to register at one of these brokers. At this moment these are the safest financial service providers that exist. Brokers licensed in other countries (such as some weird islands outside the EU) should not be trusted.
Naturally, the brokers listed here aren’t just licensed but are also proven to offer great quality services. For example, they have very large selection of assets that will enable people to create various advanced binary options winning strategies.
These strategies can be expanded though the usage of the different options types provided. The high payout rates provided by the listed brokers will make sure that traders will be able to cash in substantial profits on winning trades.
Naturally, the listed brokers also offer attractive first deposit bonuses on traders’ deposits. Check out the reviews of these brokers if you are interested in trading at high-quality service providers. You won’t be disappointed.
We also recommend you check out our binary options educational material as well as strategy guides that will make sure that you’re well-prepared to trade binary options online.