The Cyprus Securities and Exchange Commission, commonly known as CySEC, is the financial regulator of Cyprus. The agency was formed in 2001 and from 2004, since Cyprus entered in European Union, CySEC has become part of MiFID regulation offering firms registered in Cyprus access to all European markets. The company headquarters are at 32 Stasikratous Street, 4th Floor, 1065, Nicosia, Cyprus.
The board of CySEC is named by the Council of Ministers and has five members which is composed of the Chairman and the Vice-Chairman and three additional non-executive members. After 4 years from joining EU, CySEC adopted in 2008 euro and that changed the financial regulatory framework. In 2012 CySEC announced a policy regarding the classification of binary option as financial instruments. In this manner, CySEC become the first financial regulator to globally recognize and regulate binary options as financial instruments.
If a broker wants to became a CySEC broker they must meet certain financial requirements. First of all they must have a share capital more than 200.000 Euro if they are handling client’s funds. Second they must have more than 1 person who is involved in the administration of any Forex broker and least they must include all the services they are planning to offer. If a broker meet these guidelines they will receive a CySEC license.