Is it legal to trade binary options in Cyprus?
Cyprus was in fact one of the first countries to regulate binary options and treats it like any other financial instrument. It is home to some of the best binary options brokers in the industry, which are monitored by the Cyprus Securities and Exchanges Commission (CySec) which is considered as the major regulator of this type of trading.
Cyprus is also a member of the EU and as such, the regulations and laws implemented by the country are in line with EU regulations. Binary options trading licenses issued in Cyprus are for example also valid in the UK. The governing body only grants licenses to brokers who put effort into making their businesses credible. By doing this, CySec guarantees that licensed brokers will provide constant support, make realistic promises, implement proper terms and conditions, and ensure the safety of funds, especially when clients want to withdraw their money.
As a government agency, CySec has the authority to implement new regulations and rules that licensed binary options trading brokers need to follow. They constantly monitor the industry to ensure that licensed brokers comply and to ensure the safety of investors. Cyprus is also one of the more popular locations for brokers who wish to operate in Europe, simply because its established regulations for binary options trading are transparent and clear. As the laws are strictly enforced, brokers must comply, which in turn gives traders peace of mind when using these platforms.