The Cyprus Securities and Exchange Commission, which is the financial regulator for Cyprus, issued a warning against Binomo, a Forex brokerage currently offering CFD trades on cryptocurrencies to its traders.
According to the warning, the company has absolutely no legal means of operating the business within Cyrpus nor any other jurisdiction in the world.
CySEC warns local traders to immediately report to the regulator if they’ve already registered with the company or are struggling to get their deposit back onto their accounts.
CFD trading under fire
Crypto CFD trading has been under fire in numerous other countries, but Cyprus is the latest of the bunch.
Just last month, the FCA, which is the financial regulator of the United Kingdom announced its determination to place a permanent ban on crypto CFD trading due to added risk value for beginner traders.
Although CySEC has simply issued a warning, it’s likely they’ll have to introduce a ban if the number of customers does not decrease.
But when it comes to the overall crypto landscape in Cyprus, it’s very unlikely to change. The reason being the country’s clear financial literacy. The number of financial companies registered there can’t be matched by even the largest European Union nations.
Giorgi is a news reporter and financial analyst at www.forexnewsnow.com He has 3 years of experience in analyzing the financial markets of Forex and cryptocurrencies. He also likes making hidden jokes in his articles.