The financial regulator in Vanuatu tightens its requirements for all retail forex brokers, registered on the atoll.
The new regulations come after in 2016 the local Vanuatu Financial Services Commission (VFSC) imposed a minimum capital requirement of 50 000 USD for all retail brokers under its jurisdiction.
Now VFSC adds to the capital requirement a structural one – all regulated brokers should maintain a physical presence on the island – they should open an office there and have a local director.
Other measures include some restrictions regarding the crypto offerings.
All that comes after in the past couple of years Vanuatu became a favorite destination for offshore brokers who want to polish a bit their reputation by obtaining some kind of a forx license.
Still our concern with regulators such as VFSC or even the commission in Belize, is that they simply lack the capacity to oversee internationally operating brokers.
The small atoll of Vanuatu is situated in the South Pacific, near the shores of New Caledonia.