Binary Options regulation is a very hot topic in the binary/forex circles right now. The fact is that while not illegal in Europe it’s frowned upon if excessively marketed. Several binary option brokers are trying to get regulated in Europe however there’s no proper regulatory framework for that and it would take a while for it to appear. CySec being the most popular forex regulator is constantly being asked whether it can or will regulate binary options (especially interested in this are the registration firms looking to help more clients get regulated). CySec already announced on its website a while back that for now it won’t deal with binary options and now it seems under heavy pressure it issued the same announcement in more formal way:
The announcement says that due to the fact that there are a lot of publications in various media channels concerning the regulation of binary options by CySec, CySec wish to clarify that binary options are not regulated by CySec and that CySec is in contact with other European regulatory bodies so as to implement the best possible practical solution for the benefit of the investors. CySec will not accept pressure from businessmen so as to take a quick decision which might include risks.
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The previous official opinion of CySec which is published in CySec’s website, in the FAQ section:
Question: Are binary options regulated by CySEC?
Answer: CySEC’s current position is that binary options do not fall within the definition of financial instruments under the IFLaw 144(I)/2007 and are therefore not subject to CySEC regulation