[3][4][5] CySEC was launched in 2001 as part of section 5 of the Cyprus Securities and Exchange Commission (Establishment and Responsibilities) Law of 2001 as a public corporate body.

However, joining the EU and adopting the Euro significantly changed the financial regulatory framework that CySEC policed for what had been previously considered a tax haven.

[14] CySEC is administered by a seven-member Board which is composed of the Chairman and the Vice-Chairman, who are employed full-time, plus five other non-executive members.

[21] Throughout 2014 and 2015, CySEC has received criticism from traders and industry commentators who claimed that the organization required better legislation regarding the regulation and monitoring of high risk investment firms.

[22] Since July 2018, it no longer allows Cyprus Investment Firms to engage in binary options business with retail customers.

[23][24] Changes include more transparency regarding existing listed entities, tougher fines, Broker suspensions and license revoking.