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Screenshot of a breaking news alert e-mail from Q2 2017
Cyprus has been long renowned as a major center for retail FX, and interest in maintaining a strong retail FX industry on the island continues to maintain its reputation as the destination for retail FX companies, in order that they can onboard a truly global client base.
So well honed is the Cypriot FX industry that its framework of well-packaged company formation, regulation and structure, combined with skilled and knowledgeable workforce stands it out as a unique region for electronic trading.
One of the initial facets that attracted brokers from across the globe to Cyprus was CySec, the national financial markets regulator, and its pragmatic approach to regulation for FX firms. Companies can be up and running with full, Europe-wide regulatory licensing that can be passported via MiFID across EU member states including the UK, and its low corporation tax levels.
CySec has a reputation for being a very industry-friendly regulator which covers the important aspects of FX and protects customers but until now has remained unintrusive, however LeapRate has been advised by sources in Cyprus that CySec is beginning to increase its oversight by conducting a greater number of visits to brokerages to inspect their operations than was the case in the past.
One particular CEO of a Cyprus based FX brokerage who asked to remain anonymous explained to LeapRate that “Since the SNB crash, we are getting the feedback from our legal advisers that there is potential for the regulator to increase the checks upon us.”
He continued “This potentially can have a significant change in the way we conduct our business her such as staffing levels, reporting and many of the facets that are instrumental in complying with ever increasing levels of regulation.”
CySec’s remit is to ensure that the Cyprus FX industry remains key to Cyprus economy and that the future of the industry is secure, as well as to ensure that its responsibility as a regulatory authority is adhered to.