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However, joining the EU and adopting the Euro significantly changed the financial regulatory framework that CySEC policed for what had been previously considered a tax haven.

The effect was that binary options platforms operating in Cyprus where most of the platforms are based had to be regulated.

To supervise and control Licensed Investment Services Companies, Collective Investment fundsinvestment consultants and mutual fund management companies.

To grant operation licences to investment firms, including investment consultants, brokerage firms and brokers. In addition the Governor of the Central Bank of Cyprus is represented by a non-voting board member. The members of Board are named by the Council of Ministers following a proposal of the Minister of Finance and their service is a five-year term. Most of the criticism came in regards to specific binary option brokers.

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As such, binary option brokers, including prominent ones, are either registered or attempting to register with CySEC to be able to legally operate within the Eurozone or to be trusted internationally.

In accordance with state law, an investment firm employee involved in the provision of investment services or the carrying out of investment activities, must be registered in the public register of certified persons after passing the exams.

The law aims to arm Investment Firms with a good understanding of the local and European legal and regulatory framework and practices along with the essential understanding in regards to Money LaunderingRisk Management and Economics.

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