Binary options trading as an industry formed around 2009, and since then, literally hundreds of brokers have been sprouting up worldwide. Thus far, none have been regulated, as no regulatory body in the EU or elsewhere throughout the world has committed to overseeing or providing guidelines for the activities of binary options brokers. In other words, although many binary options brokers do operate quite professionally, there has been nothing stopping unscrupulous companies from swindling unsuspecting traders. This is about to change, however, as CySec, the financial regulatory agency of Cyprus, has just announced its intention to begin regulating binary options brokers.
The announcement comes after approximately two years of advocacy by MAP S. Platis, a consulting and advisory board that works closely with financial institutions in Cyprus, Russia and the European Union. According to MAP S. Platis, as of early May 2012, CySec has acknowledged that binary options trading activities should fall under the umbrella of MiFID, the Markets in Financial Instruments Directive, a directive which came into effect in November 2007 to promote competition and to protect consumer interests relating to financial services in the EU and several other countries. As a result of this ruling, CySec will now be regulating binary options activities.
The announcement coming from CySec regarding this new regulation instructs all binary options brokers to submit their intention to apply for regulation within 15 days. MAP S. Platis has noted that at least 3 binary options brokers have already applied for binary options regulation. It should be expected that more applications will be submitted in the coming days.