Forex: A Strictly Regulated Sector in Cyprus

The forex sector in Cyprus is strictly regulated and distinct from illegal schemes, making a significant contribution to the economy. Forex companies are supervised by the Cyprus Securities and Exchange Commission and other competent authorities, operating within strict regulatory frameworks and European directives.

It was emphasized that illegal schemes, such as boiler rooms, are not related to forex. The recent Europol announcement about dismantling a fraud ring did not involve forex companies.

Forex companies do not provide investment advice and do not promise returns, but offer execution of stock market orders through electronic platforms. They implement strict procedures to prevent money laundering and terrorist financing, ensuring that deposits and withdrawals are made only by the investors themselves.

The sector employs thousands of workers, boosts GDP, and attracts investments in Cyprus. The term financial technology (fintech) is considered more accurate to describe the current services of the sector.