CySEC limits the leverage for cryptocurrency CFDs to 1:2

Discussion in 'Crypto Assets' started by mlawson71, May 18, 2018.

  1. mlawson71

    mlawson71

    The Cyprus Securities and Exchange Commission (CySEC) issued new guidelines regarding the cryptocurrency products offered by the plethora of brokers overseen by them. The country is a popular choice of those who are looking to do business in the European Union, as being regulate there grants you access to clients in all member states.

    The document begins by reiterating the key principle established by European Securities and Markets Authority (ESMA) – “while cryptocurrencies themselves aren’t seen as financial instruments, derivatives, such as CFDs, based on them are”. This immediately implies all companies in Cyprus which offer these assets (the majority of forex brokers) should be overseen by the local watchdog and follow the appropriate rules. They include a procedure for verifying the price quotes provided, as well as cutting the maximum leverage offered to 1:2.
     
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