Eternity Law International News Forex regulation changes

Forex regulation changes

October 5, 2020

Forex regulation changes. Forex regulation is becoming stricter, but this is expected to benefit the long-term investment safety of clients.

The retail forex industry is developing rapidly. And the popularity of online currency and securities trading continues to grow. An overview of regulated forex brokers and the role of internal requirements evolves along with this growth.

Several additional requirements were added, in particular, there were requirements for greater transparency in the Normative legal framework.

1. Risky Operations Supervision Arrangements – Changes in Forex Regulation

Back in September 2014, the Cyprus Securities and Exchange Commission – CySEC announced that it would design and develop the Risk Based Supervision Framework (‘RBS-F’) as part of its work to better supervise for regulated entities and ensure their healthy functioning.

During this time, CySEC has been collecting information on Cyprus Investment Firms (CIFs) and has prepared an assessment of these firms according to a number of factors, including their market volume. This gave CySec a clearunderstanding of the structure of the industry, which allowed it to better control the industry as a whole, as well as the brokers within it.

Thanks to this connection, it is expected that investment companies and CySEC will cooperate and solve problems in a transparent and peaceful manner.

This development provides greater accountability, which ultimately benefits the client as the level of transparency increases within the regulated forex market.

It is important to note that  you can be sure that the FX broker provides its clients with a safe and reliable investment.

Licensed brokers are required to ensure that clients’ funds are safe. They also must follow strict anti-money laundering procedures, and ensure that client orders are executed in the best possible way.

Client funds will also be protected in the event of a brokerage of the broker, in accordance with the rules of the Compensation Fund.

2. MiFID II – Changes in Forex Regulation

A study of the current situation shows us that the EU Markets in Financial Instruments Directive (MiFID) has undergone significant changes in recent years. These regulatory changes are seen as positive developments for the industry as a whole. They bring more transparency and accountability to the market, which means more confidence for those regulated companies that remain active after such procedures.

These regulatory changes are seen as positive developments for the industry as a whole, as they bring more transparency and accountability to the market. It means more confidence for those regulated companies that remain active after such procedures.

Indeed, regulation is getting stricter, but this is expected to benefit the long-term investment safety of clients.

This issue is considered as resource allocation; Brokers will need to deposit funds with their compliance departments to ensure clients that MiFID II compliance measures are implemented when the new regulations take effect.

It is quite expected that the forex industry and regulators will continue to create additional forums and delay implementation of the compliance system, thus providing a functioning, more profitable and simpler structure for traders and all interested parties.

3. CRS – Changes in forex regulation

The main objective of this new reporting procedure is to combat tax evasion in offshore jurisdictions and to provide a minimum set of standards and framework to improve efficiency.

CRS stands for a common reporting standard and covers the automatic exchange of financial information developed by the OECD.

This is a new reporting requirement for financial institutions in participating countries, including Cyprus, and is aimed at combating tax evasion and protecting the integrity of tax systems.

All local financial institutions, including regulated investment companies engaged in forex activities, must comply with the specified CRS requirements.

If you are interested in obtaining, contact us to learn more about licensing options, receive an individual offer based on your requirements and a detailed calculation for obtaining a license for your future or existing business.

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