Russian-based forex brokerage group Forex Club said its unit Financial Company Forex Club applied on Tuesday to receive a status of registered forex broker in Belarus. The National Bank of the Republic of Belarus (NBRB), which is in charge of the forex market, has to come up with a decision within 30 days.
The broker seems to be consistently trying to strengthen its presence in Russia and the Commonwealth of Independent States (CIS), or the former Soviet countries. In December last year, Forex Club applied for a forex broker license in Russia. However, it is still pending license approval.
According to the local laws, adopted mid-2015, forex brokers based in Russia are required to obtain a license from the relevant authorities in the country in order to continue providing their services to local citizens after 1 January, 2016. The limitations, however, do not apply for foreign brokers, which are still allowed to target Russian citizens.
Following the adoption of the forex legislation in Russia, Belarus also underwent law amendments. In June 2015, Belarisian president Alexander Lukashenko signed a decree on a new regulation of the country’s financial market, under which Belarus will create and maintain a register of forex companies licensed by the Belarusian central bank, the NBRB, as well as a national forex center for supervision of the compliance with requirements of the decree.
The changes, which will come into effect within nine months of signing, aim to develop the financial markets in Belarus, enhance legal protection of citizens and reduce the risk of interaction with fraudulent companies and financial pyramids. In addition, brokers have to provide registered funds of a minimum BYR 2 billion, or about $130,000.
Forex Club is a provider of trading and educational products for investment in forex, contracts for difference (CFDs), securities, precious metals, oil and gas, indices and other instruments. It is a founding member of CRFIN, the Russian self-regulatory organization. The group does not provide on its website information regarding licensing. Since the beginning of 2016, the broker is a member of Hong Kong-based external dispute resolution (EDR) organization Financial Commission.
Source: Forex Club