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Regulation on Virtual Currencies – C244

As in accordance with CySEC Circular 244 – Trading in virtual currencies and/or trading on contracts for differences relating to virtual currencies, CySEC sets preliminary regulatory requirements regarding the trading of virtual currencies or related contracts of differences in anticipation of the official position of European authorities. It should be noted that there is no specific EU regulatory framework governing the trading on virtual currencies and/or trading on CFDs relating to virtual currencies. In summary, a CIF must:

  • inform their clients that there is no specific EU regulatory framework governing the trading in such products
  • that virtual currencies carry a significant risk, are highly volatile and are not appropriate for inexperience clients
  • disclose all related information including bid/ask calculation
  • use only licensed/regulated feed providers (e.g. virtual currency exchanges, liquidity providers)
  • maintain sufficient controls, measures and procedures to identify related risk
  • maintain proper and sufficient record keeping procedures and controls
  • set maximum leverage limit 1:5 for retail clients