Cyprus Forex Brokers banned from accepting non-EU clients

I just read (and am shocked) that the Cyprus government has, with immediate effective, have stipulated that brokers which operate under the CySeC license and that comply with MiFID rulings, will only allow them to attract clients from Europe (including UK) only. They will no longer be able to accept clients from any jurisdiction outside of the European Union.

Therefore, all CySec brokers are breaking the law if they are accepting non-EU clients.

Is Cyprus really that stupid, or is it related to troika?

What happens to non EU resident clients already holding accounts?

Where's the source or Link?
It affect me if its true.

Does this affect citizens of EU nations with residency abroad?

may be they just don't want to be reliable for a lot of clients around the world
anyway sounds really strange

Implementation has been postponed until the end of October...

http://forexmagnates.com/cysec-backt...te-to-october/

and

http://forexmagnates.com/get-out-cys...on-eu-clients/

Interesting situation, Cyprus only looses because of that. From the other hand I don't understand how broker will be punished for such actions as taking non EU clients, same punishment as USA did ? This is only good for non EU traders, as they will start trading at local brokers where if they DO have problems they can easily go to their court while if they have problems in EU brokers, it is much harder to resolve issue, interesting why Cyprus cares...

I guess brokers will have to pay heavy fines for accepting non-EU clients.

By the way what punishment have USA?

If they will no longer be accepting non EU resident funds, what happens to already existing accounts?

Doesn't say anything about Binary Option Brokers.

Quoting smf154
From the other hand I don't understand how broker will be punished for such actions as taking non EU clients, same punishment as USA did ? .

I have already a few live accounts with Brokers in Cyprus and i had to look into it even further from my side because i don't want to risk my accounts.
i browsed the internet and came accross the law for the non EU countries and also the letter that was sent to the brokers. it is available on cysec's website.
Brokers will only be punished from each competent authority that they have clients from but they did not receive an approval.
In other words, if a Cypriot regulated broker accepts clients from Australia but he did not receive the approval of ASIC then they will be fined by ASIC
The letter from Cysec stresses that it is the responsibility of the Cyprus Broker to be informed about the relevant legal provisions of the third country.
Btw this specific law applies to all EU regulated brokers meaning that FCA regulated brokers need to follow this law too.
So my belief is that all Brokers within the EU have already contacted the competent authorities to receive their approval.

As said above,

CySEC has just released a new circular for this matter today on the 23rd of August 2013.
The bottom line is that Cyprus Investment Firms are obliged to follow the rules of the third countries. CySEC is not getting involved when third country authorities have any issues with Cyprus Investment Firms.

Puts the matter to rest!