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For a long time, binary options trading was a popular financial tool for traders. It is one of the easiest ways for a beginner to start trading.
Binary Options are Gambling Not Investment!
Such options were available in many European countries, and Cyprus was no exception. However, not everything is as simple as it might seem. Since there were some diceiving brokers in Cyprus, it made people wary as to whether brokers based in it are the right choice or not.
Cyprus is part of the Cyprus binary options Union and, should follow the European strict trading rules, especially in the case of binary options. CySEC discovered that CIFs offering investment services in binary options used aggressive marketing approaches and did not always ensure right information to customers about the possible risks in trading.
As a result, the marketing, distribution and sale of Binary Options to retail clients is permanently prohibited from or in the Republic of Cyprus, irrespective of whether these are traded OTC or on a Trading Venue, pursuant to article 42 of MiFIR.
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Also, the consultation paper offered by CySEC aims to ensure an enhanced approach for a suitable client classification by the firms, while the proposed rules continue to give investor protection.
Click here to download.