Shadow of Cyprus crisis remains cast on retail FX

The crisis that erupted in Cyprus earlier this year proved to be a severe test not just for the resolve of the international community that had to put together an emergency rescue package, but also for the handful of FX brokers based on the island, many of whom faced a flurry of questions over the safety of client assets.

Cyprus's fiscal problems stemmed from the slow failure of its two largest banks – Laiki Bank and Bank of Cyprus – which were overexposed to the local real estate market and the