Skrill will require license assurance from forex brokers

Skrill will require license assurance from forex brokers

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Skrill, which is specialized in international money transfers, will require all forex and CFD brokers, providing services in the European Union, to show an official copy of their license, allowing them to offer financial services to retail clients.

Skrill says the move is related to the recent changes in the regulatiоn, initiated by the European Securities and Markets Authority (ESMA) and similar moves by other companies like Google, MasterCard and VISA, aimed at curbing the investment risk for customers.

Skrill mentions specifically all binary options brokers as their operations on the European market are essentially banned since August, when the new ESMA regulations came in to force.

All brokers using the Skrill payment service will receive letters explaining the new rule, with which they will have to comply.

Skrill customers form all EU countries will not be able to transfer funds to unregulated brokers as of November 30th. Those brokers, however, will have 14 days more (until mid December) in which will be able to use Skrill to return funds to their clients.

The move is expected to be followed by similar actions by other payment companies in Europe like Neteller, WebMoney, FasaPay, Sofort and Klarna.

In addition, since July Google requires forex and CFD brokers, who want to use Google adds, to apply for a special certificate, which is issued only to legit and properly licensed brokers.

Additionally VISA and MasterCard extended the period in which a client of a retail forex and CFD broker can file for a charge back to 540 days form 180 days. The measure is already applied by MstarCard and will be enforced by VISA in December.

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