Today, the Cypriot Securities and Exchange Commission (CySec) announced that has decided to include the trading/activity in Binary Options within the scope of the Investment Services and Related Activities Law of 2007-2009.
After consultations on an European level regarding the supervision of Binary Options and their regulation in other member states, the CySec has decided that Binary Options are financial instruments as per paragraphs 4, 5, 6 and 7 in Part III of Appendix 3 of the aforementioned law.
In this connection, all entities, which offer investment services, related to binary options have to submit their applications to the CySec in order to obtain a license to operate as a Cyprus Investment Firm (CIF).
Companies which will apply for CIF authorization may decide, on the basis of the characteristics of the financial instrument/product, to which of the above paragraphs of the law to categorize instruments to be offered.
All companies that already have CIFs authorization and a license for offering investment services may continue to offer binary options services, but they need to immediately inform CySec in writing on whether they intend to or are already performing activities, related to binary options.
All investment intermediaries, which currently offer binary option services as “other service”, or these, which intend to perform activities related to binary options, have to apply for modification of their CIF license.
The CySec informed also, that all investment firms, which are performing activities, related to binary options, have to submit an application for CIF license/authorization as per the Law within 15 days from the date of today’s announcement and to dully inform CySec in writing of their intentions.
The Commission states also that within 6 months from the date of the announcement, all companies should submit an application for CIF license/authorization.
All entities which will not submit their intentions in writing have to cease their activities related to binary options.