Do not invest more money than you can afford to lose.
The Cyprus Securities and Exchange Commission (CySEC) said on Friday it has granted license to G.S.E Golden Sky Europe Ltd. to operate as an investment and ancillary service provider. The license was issued on 22 January,2016, and has not been activated yet, the regulator said in a notice.
Under the Cypriot regulations, the CySEC grants a financial entity a non-active license, which it later activates. However, in order to do so, the regulator has to make sure the entity has met certain conditions and criteria. Companies are not allowed to operate until they receive an activated license status.
Investment companies are not allowed to operate in the country without holding a license by the CySEC or the relevant authorities in any other EU member state.
Cyprus is a preferred registration destination for many brokers. A license by the CySEC provides access to the markets of all EU countries.
Earlier this week, the Cypriot regulator said it has also granted a license to Avus Capital, a forex brokerage doing business as Trading 212 and licensed in the UK and Bulgaria, as well. The broker’s license is yet to be activated.
To obtain a license as a Cypriot investment company, however, brokers need to meet a number of requirements, which are sometimes more harsh than in other countries. For starters, they need to present an initial capital of at least €200,000 for limited license or €1 million for full license. The watchdog exercises strict supervision over the markets in its jurisdiction. A CySEC license makes a broker appear more secure and attractive to trader.
The CySEC is the financial regulatory body in Cyprus and as such it has licensed more than 200 Cyprus Investment Firms (CIFs). It is authorized to regulate and supervise the country’s capital markets. The CySEC’s managing board consists of five members, each one of which serves a term of five years.
Other brokers that hold licenses issued by the Cypriot financial regulator include FxPro, XM, FXTM, EXNESS, Hot Forex, and IronFX.
Source: CySEC
