An exciting piece of news about regulation of binary option brokers emerged today, as 24option, part of the Cbay Financial Services Limited, has joined the rank of such brokers with Cypriot regulation. According to an exclusive report by Forex Magnates, the Cyprus Securities and Exchange Commission (CySEC) has given the nod of approval to the firm's application for a license in Cyprus.
Apart from allowing the broker to expand its operations, boost its reputation and credibility, the license sets 24option aside from many of its competitors which prefer to remain unregulated in the fuzzy field of binary option trading. Regulators in various countries have taken a different approach to binary options
, mostly because these instruments inhabit the area between finance and gambling. And while in many countries, like Russia and China, for example, these instruments remain unregulated and trading with them flourishes, other regulators have taken a stiffer stance.
Japan is currently working on regulating binary option trading and Malta
has already acted to introduce rules that treat binary options like financial instruments, falling under the scope of the MiFID Directive.
CySEC is in fact the pioneer in regulating binary options as financial instruments: perhaps you recall that in May 2012 it registered binary expert SpotOption
as a Cyprus Investment Firm (CIF). Alike SpotOption, 24Option will be able now to get into partnerships with other CIFs: these include white-label relationships. The company will be able to benefit from a raft of tax deductions and other incentives too.
However, the news of the licensing of 24option comes just months after the Cypriot financial sector experienced one of its severest crises, which also affected the FX sector. The latest problems created by the changes of CySEC's opinion concerning the operations of Cyprus-regulated brokers in countries outside of the European Union have not helped local FX firms either. Let's hope that the regulatory climate will be more mild and beneficial for 24option.
24option is a binary option broker, a part of Cbay Financial Services Limited, with a main office in Limassol, Cyprus. The company is committed to providing its clients the best service – no wonder then that you can get in touch with 17 different local offices and access customer support in the desired language. The broker allows trading in a raft of options: touch-no touch; boundary; high-low, etc. The expiry times of the instruments also vary: from the end of hour to the end of week.