If you remember, last year the Australian parliament banned non-Australian citizens from working with Australian-regulated brokers last year.

Now new regulatory framework was introduced by the Australian financial regulator Australian Securities & Investments Commission (ASIC), concerning foreign financial services providers (FFSPs) that wish to operate on Australian soil.

According to the new regulation, those entities need to be regulated by a overseas regulatory regime which ASIC considers to be sufficiently equivalent to ASIC.
At the moment those regulators are: Securities and Exchange Commission, Commodity Futures Trading Commission, the Federal Reserve,etc. in the USA, the Hong Kong Securities and Futures Commission (SFC), the Monetary Authority of Singapore (MAS), the BritishFinancial Conduct Authority (FCA), the German regulator Bafin, the French regulator AMF as well as a number of other EU regulators. The Cypriot regulator CySEC, however, is not among them.
Source
I guess CySEC’s reputation precedes it that they don’t want to recognize their authority.