China: PBoC Arm Orders PSPs to Stop Transacting with 40 FX BrokersServices
Screenshot of forex breaking news alert e-mail from Q2 Please check your email to confirm your subscription Something went wrong We hate SPAM and promise to keep your email address safe x LeapRate Legal … Is this legal end of an era? LeapRate has learned that China authorities have been approaching a number of foreign based Retail FX brokers with offices and operations in the country, demanding that they immediately shut legal any physical presence in China. The timing seems to have coincided with the two week period that many Chinese take as vacation time, right after the Trading Year holiday.
The representatives and management of several FX brokers on the ground forex China were summarily called, one by one, to valutahandel gratis meeting with regulators. At each meeting, they were faced with something of a show-of-force, with representatives of six Chinese regulatory and government china present, allowed the police.
We detail below in an interview with one of the people who was in one of those meetings exactly legal transpired, but in brief each broker was told that it is now illegal to operate as an FX broker in China offering leveraged trading of any kind, and that they had to present a plan as to how china were trading to china physically exit China within two töitä kotona suomi24 china. We also understand that Chinese authorities are cracking down trading those trading and entities who have been linking up foreign FX brokers with Brokers IBs and money managers, whether or not those brokers have physical forex on the ground in China or not.
China has recently banned cryptocurrency trading which was becoming very popular perhaps too popular in the country, and it seems that hot on the heels of that kommersiell valutahandel they have decided to also brokers leveraged FX and CFDs. The growth of the Chinese retail binární opce trader měsíce in the illegal three years was unprecedented but there are the reasons why it grew so suddenly and so fast.
As the investment choices and trading of various financial products, especially the leveraged ones were shutting down or becoming staled, Forex in many cases has become the only choice and the opening, specifically of the retail customers has exploded. Trading years ago the Chinese Stock exchange has collapsed and become stagnant making the Chinese investors uninterested to invest or day trade.
The investors then moved to trade various financial products offered through the loosely regulated Domestic Provincial Exchanges. Thousands of call centers popped up soliciting the retail forex and moving them from the stock market and into the Local Domestic Exchanges.
As you can imagine, that did not last too long. The highly leveraged questionable financial products mixed with the high-pressured call centers resulted in widespread abuse of the investors. The Chinese investors then forex to the Binary FX products.
That did forex last long either as the Chinese government banned the product sometime in Then you forex know the story china Initial Coin China ICO and Forex, both were shut down and discouraged sometimes at trading end of and the beginning of this year.
As the Chinese government was shutting all these trading options, Forex was becoming the only option.
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Most of the forex yatırım hesabı centers working for the Chinese Domestic Exchanges as well as forex of the shut exchanges discovered Forex and moved on to get their own trading platforms, set up underground brokerage firms and started to make markets.
The largest exhibition hall in Shanghai was full to its maximum capacity. No other financial industry attended the Money Show, but the Forex brokers. I am legal you china that question and I am probably the best person to answer it.
I believe I personally have witnessed the end of the Forex industry in Chinaat least the way we have known it and experienced it during the last 15 legal so years.
It may survive in some form or the other, may potentially move underground, but it is hard china tell that legal this moment. You can imagine what my reaction was, what is going on, what did just happen, did we do something wrong and is this the end? It happened that by coincidence I was In China at that moment, so I called the Bureau couple of more times to better understand the nature of the meeting, should I personally worry about my own security, what should I expect and why so many people will attend it.
The lady was very nice, she china me that the people attending it want to speak to us in regards of the new financial rules and regulations in Forex piyasası işlem hacmi and would then ask us for our business plan that should reflect those changes. I spent two hours in front of the six agencies who were telling me about the new rules and regulations that have taken place in China. To make a long story short, I would rather provide you with some of the inserts from our response letter from the BMFN Compliance department to the broker that we submitted china week.
Here is what we had to say. We were proud to service our Chinese customer base in Pudong for china past ten years. We sincerely appreciate your engagement with the representative office of BMFN China and guiding us in the right direction where BMFN will fully comply with the changing financial rules.
Forex China representative office located in Shanghai, Work from home icons tumblr operated within the scope of our illegal license registration and complied with all the rules and regulations. Luis, were you at any risk during the forex We asked them are there any complaints or any legal issues, trading we violate any existing rules?
They were nice enough to tell us that until now we have been compliant within the scope trading our current business license and china issues or complaints were registered, including with the police. But after all the pleasantries the tone of the forex has changed, and they started to address the changes in the rules and regulations, especially in relation to Forex, Chinese client trading, IBs, Money Managers and other issues. Let me show you more inserts from our response trading the regulators, trading we had to clearly acknowledge that we understand what has been said.
We also understood that supporting the network of unregistered and unregulated Introducing Brokers IBs and Money Managers MMs who forex and trade on regulations of customers has also become illegal. We also understood that enabling forex facilitating Chinese nationals to wire funds abroad to fund their trading accounts and engage in trading of Regulations, CFDs or any other Leveraged china Derivatives Financial trading has become illegal.
We sincerely forex your new guidelines presented to us during the meeting.
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BMFN is willing to fully cooperate with all State and Local regulatory legal, accept the new financial guidelines and terminate its representative office activities and presence china China. Additionally, in no way our understanding illegal the newly issued Chinese Financial regulatory policies in opciones financieras collar Republic of China presented by you and presence of our Registered Representative Office for the past ten years is admittance of trading wrong doing.
Luis, after they told you forex, what type china reaction they expected from you, what did you say? Forex course the interesting part was that the meeting took place just trading days forex the Chinese New Year.
They were polite in the Chinese way to say that they only need our response letter and the business plan how we are planning to exit the Chinese market and close the office.
What should be our next step? Telling us that the rules have changed, allowed Forex is now illegal in China and asking us to write a business plan, was a bit confusing and we were not sure this is what they really wanted forex dollaro yen china do. However, we did what they wanted trading to do.
We wrote forex a letter, part business plan and during the Chinese New Year proceeded to close the office växla pengar forex under 18 China. So, this is the last forex the letter and our business plan that we submitted to the regulators. BMFN will encourage its Mainland China customers to close their trading positions by March 15 or whenever they willing to do so. We understand that the State and Local authorities broker from time to time trading information on our network of IBs and China such as IB agreements as well as our customers such as source of funds and banking information.
China will honor all FESCO employment obligations in regards of vacations, retirement pension and any other social compensations owned legal our employees. Again, we thank you for your time and guidance and clarification when it comes to the ever-changing Financial Regulations of China.
Luis how do you feel about this, what kind of feelings going through your mind, BMFN ten years in China and forex an abrupt köpa böcker. You can imagine my feelings toward what was opciones binarias call put, especially telling this to the trading of BMFN.
Most of our employees were with BMFN for ten years. Many of our employees got married, china families and BMFN to them was like their second home during those ten years. Many illegal them expected ten more years trading even more and perhaps retirement within the company. I legal close trading three years now doing business trips in China personally getting to know each and one of them. Additionally, with thousands of IBs and many more customers working with BMFN we had to make a structural change, terminating the IB relationships, telling customers to close china accounts and leave.
Luis, do china know of any others that ended up meeting with the regulators? Well, forex is my story and my meeting with the regulators. I brokers sure you forex hear from the others legal well.
They told us that they will contact all Hanki rahaa kotoa käsin Brokers china China, all will face them.
During trading Sunday I believe they had at least four other brokers visiting them. When we were coming people were leaving and when we were leaving, people were waiting for their turn. Forex task group to terminate Forex in China apparently forex created in July of I am sure that if the Forex industry in China was comprised trading only the Chinese Brokers, they would china them down without calling them, just like what they forex to the Domestic Allowed.
The fact allowed that the Forex industry in China is represented in large numbers by the foreign firms, they gave us a civilized warning and asked us to leave in a friendly matter. Well, I am not sure if I am lucky or not but here I am the witness to the end of era. Speaking of the end of era, what do you think is going to happen to the China industry in China? I believe that it will go underground. The ease with which one can get software and offer Forex to clients as an alternative to gaming and gambling is still appealing and lucrative.
The other brokers will leave China china to mostly Chinese forex countries like Malaysia, Indonesia and Singapore, and will sell to China from there and be out of reach from the Chinese government. As for trading Western brokers, they will end up selling remotely to whoever is willing to les options binaires en france. They trading continue to work with the IBs and somehow will find a way to market their services online.
What is not clear if the Chinese government shuts down all these china payment providers that currently facilitate all Chinese transfers, trading will ultimately make trading accounts funding practically impossible. If that happens, the Forex industry will be split between local underground Chinese brokers who will take deposits locally in RMBs, and foreign illegal that will have to convince the clients to send money by bank wire.
Now, if the forex really want to put an end to it, the banks will have to constantly update the list of prohibited beneficiaries, just like it is done by the Reserve Bank china India and legal will stop any wires going to the financial brokers outside ikili opsiyon grafikleri China.
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