Cyprus Securities and Exchange Commission (CySEC)
How to avoid scams
CySEC points readers to its Warning List, says a firm missing from the list could still be a scam, and asks anyone with concerns to end contact and tell the regulator.
Many online brokers claim a licence in Cyprus or elsewhere in the European Union. This page summarises what CySEC publishes about its Warning List and about reporting suspected scams. It does not define CySEC authorisation, assess any firm, or say which firms hold a licence.
What the Warning List Is For
On its guidance page about avoiding scams, CySEC tells readers: "Check CySEC’s Warning List to see if the firm is known to be operating without our authorisation." The list is therefore a place to look for firms the regulator already knows about. It is one check among several, and CySEC's own wording describes it as a list of firms known to operate without authorisation.
Not Being on the List Proves Little
CySEC adds a caution: "Even if a firm isn’t on our warning list, it could still be a scam – firms change names and details all the time." A clean result is not a clearance. A firm can be new, can trade under another name, or may not yet have been reported. For the wider checking routine, see how to check whether a broker is regulated and unregulated binary options brokers: risks regulators describe.
If You Suspect a Scam
CySEC advises: "If you have any concerns at all about a potential scam, end all contact and inform us immediately." If money or bank details have been shared, the page says: "If you’ve given your bank account details to a firm you think may be operating a scam, tell your bank immediately." For reporting in other countries, read how to report a binary options scam.
Limits of This Page
The CySEC page reviewed is about scams. It does not explain what CySEC authorisation allows a firm to do, and it does not mention binary options. For how rules on binary options differ across the European Union, see our guide to binary options in the EU, binary options regulation by country and the binary options regulator list by country.
Frequently Asked Questions
What does CySEC tell people to check first?
CySEC says to check its Warning List to see whether a firm is known to be operating without its authorisation.
Does a firm's absence from the Warning List mean it is safe?
No. CySEC states: "Even if a firm isn’t on our warning list, it could still be a scam – firms change names and details all the time."
What does CySEC advise if you have concerns about a firm?
The page says: "If you have any concerns at all about a potential scam, end all contact and inform us immediately."
Does this page address whether an individual could face liability?
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
Sources and Official References
- CySEC: How to avoid scams (no date shown on the page)
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.