CySEC Urges Brokerages to Stop Providing Services to Belgian Residents

In the aftermath of Belgium’s ban on over-the-counter (OTC) foreign exchange (FX), contracts-for-difference (CFDs) and binary options, 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) issued a notice to Cyprus Investment Firms (CIFs) to comply with the regulatory changes, which will come into effect on August 18, 2016, per a CySEC filing.

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The move follows an ongoing situation in Belgium, which pitted the country’s market watchdog, the Financial Services and Markets Authority (FSMA) against a bevy of scandals and illicit operations. The litany of warnings against unauthorized firms soliciting clients in its jurisdiction eventually prompted the regulator to act, with the Belgian government opting to completely ban retail online trading in FX, binary options, and CFDs.

As such, CySEC has urged CIFs to immediately stop providing financial services to Belgian residents. The ban will apply to OTC derivatives and not to trading on a regulated exchange or on a multilateral trading facility, which is designed to supplement a Belgian distribution ban that was already in force for certain products, such as financial products with Bitcoin or other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term as their underlying.