Belgian Watchdog Asks CySEC to Request Cyprus Firms Report Operations

Belgian financial regulator, the Financial Services and Markets Authority (FSMA), has repeatedly issued warnings against the activities of various providers of binary options and Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term engaging in unauthorized activities in Belgium. Now the watchdog is taking action against locally unauthorized firms on another level by contacting the regulator of another jurisdiction and asking to keep its house in order.

Today, the Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) sent a note to all Cyprus Investment Firms (CIFs) providing investment services relating to binary options cross-border into the territory of Belgium, drawing their attention to the Belgian investment regulation law. CySEC specifically mentioned that this was done upon request of the FSMA.

According to the relevant Belgian law, any public offer of investment instruments made in the territory of Belgium is subject to the obligation to publish a Prospectus. CySEC notes that, in order for any CIF to offer cross-border services in Belgium, the said CIF should take all necessary steps to ensure its compliance with all respective laws, rules and regulations that govern the provision of investment services and activities in the said jurisdiction.

Therefore CySEC says, in the event that a CIF offers cross-border investment services relating to binary options in the territory of Belgium, such CIF is urged to immediately proceed to the issuance of a Prospectus which must be approved by the FSMA, as per the provisions of the Belgian law, or immediately cease offering such services in the territory of Belgium.

There was no mention in today's note of any measures that the regulator might take against CIFs in the case they continue to offer unauthorized services in Belgium. However, as FSMA is evidently much more active in its approach to such matters, going beyond the minimal warnings most regulators publish, it can be assumed that it would demand that CySEC fines CIFs who don't comply next.