CySEC sets new rules on cryptocurrency trading

Discussion in 'Crypto Assets' started by mlawson71, Oct 17, 2017.

  1. mlawson71

    mlawson71

    The Cyprus Securities and Exchange Commission (CySEC) has set limitations on the trading conditions of CFDs on cryptocurrencies offered by its charges.

    Probably the most significant part of the document concerns the banning of exercising of EU passporting rules when offering CFDs on cryptocurrencies. In other words, if trading in cryptocurrencies or products with them is forbidden in a given EU or third country, the broker should not offer those products in it.

    Also, under the new rules, the brokers must not offer to retail clients a leverage of more than 1:5 on those instruments and the volume of crypto CFDs should not exceed 15% of the total turnover of the broker per quarter.
     
    Baron and Visaria like this.
  2. doggyfx

    doggyfx

    What about FCA regulation? I have both tickmill and hotforex accounts to trade bitcoin, seems this gonna cap trading with HF, but FCA regulated brokers seems to have been staying untouched yet.
     
  3. mlawson71

    mlawson71

    The FCA hasn't said anything, as far as I know, but the New Zealand regulator FMA recently came out with a formal commentary on the hot topic of cryptocurrencies and Initial Coin Offerings (ICOs), noting that they are risky and must be regulated.