Open trading account 
These days Cyprus has a tendency of getting the spotlight way more often it should. And Cyprus did it again!
Cypriot regulator CySeC enacted a rule, which is effective immediately, that stipulates that brokers which operate under the CySeC license and as a result comply with MiFID rulings allowing them to attract clients from all over Europe, including Britain, will no longer be able to solicit business from any jurisdiction outside of the European Union.
Obviously, the new ruling will have a potentially dramatic effect on how brokers in Cyprus conduct their business in the future. This 180 degree shift by CySeC, from being possibly the most flexible and inviting FX regulator to putting a ban that will clearly end most of the retail FX industry on the island, seems sudden and somewhat irrational.
I think this move certainly reflects the particular challenges which they face and nothing more, but a continuation of the lack of long term business integrity in Cyprus. It also presents a good opportunity for competitors to try and attract customers from Cyprus based FX companies.
That said, as retail involvement in FX trading increases across the EU, I would not be surprised if, in the rush to get clients, there will be some firms who overlook the necessary checks or use sales tactics that overstep the mark. That will lead to greater regulatory interest in what has been a relatively niche market to date. However, it’s probably safe to say that those established firms with the highest levels of internal procedures, client identification, education and protection procedures, and risk controls will have little to fear in the face of such increased scrutiny (should it occur).
Of course, the big question is: is this an isolated position of a regulator in a particular jurisdiction or this is a position that other EU regulators may adopt? As far as Malta, so far Malta confirmed that has no plans to emulate this initiative by CySeC. Malta Financial Services Authority certainly understands that this would be a business killer.
However, I would recommend that FX firms going after ex-Cyprus clients be particularly wary about attracting lots of interesting clients as part of the fall-out from this action by CySeC. It would be even more important than usual to ensure the highest standard KYC and AML procedures are in place, if seeking to offer disappointed ex-Cyprus clients a new venue to trade.
For more information:
Get Out! CySEC Bans FX Firms From Accepting Non-EU Clients
http://forexmagnates.com/get-out-cysec-bans-fx-firms-from-accepting-non-eu-clients/