Cyprus Security and Exchange Commission
I expect, some senior members will assist me to know the actual reason behind it.
Nearby located offshore which is inside EU (Cyprus joined the EU on 1 May 2004 as a divided island).
So, offshore for taxes, no visa to EU for the management of the brokers 
and may be - some kind of regulation of the forex market by The Cyprus Investment Firms (CIF) Act of 2002, and CySEC too.
But I am not familiar with CySEC etc sorry ...
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Why Cyprus Security and Exchange Commission is the first choice of brokers to being regulated?