Russian c-bank detects 81 illegal Forex dealers in H1 2019

Maria Nikolova

Some 38 of these companies targeted Russian clientele from abroad, Head of the Bank of Russia’s Department for Countering Malpractice told TASS in an interview.

The Central Bank of Russia has detected 81 illegal Forex dealers (the official designation of OTC FX brokers in Russia) in the first half of 2019. The data was provided by Valery Lyakh, Head of the Bank of Russia’s Department for Countering Malpractice, in an interview with Russian information agency TASS.

Mr Lyakh explained that, out of these 81 entities, 38 were operating from abroad. They targeted Russian-speaking clientele via their websites.

The fraudulent schemes remain the same – the companies pretend to be active in the FX market, they falsely claim that clients have profitable accounts, but when one decides to withdraw one’s money, the account gets blocked or shows a zero balance. Then the company stops responding to the clients’ phone calls.

During the first quarter of 2019, the central bank received 69,600 complaints about clients of financial services providers, a number which is 2.2% higher than in the corresponding period a year earlier. The main reasons for the rise include an increase in the number of complaints about credit providers.

Regarding the enquiries concerning financial market participants, a group which includes Forex dealers (the official designation for OTC FX firms in Russia), the number of complaints regarding such entities was not significant in the first quarter of 2019. These amounted to humble 370 complaints. Of the total, complaints about Forex dealers accounted for 9%.

The small number of complaints about Russian FX dealers, however, may hardly be seen as an indicator of the health of the Russian Forex industry. Especially as the number of entities offering Forex services in Russia without a license remains substantial. Let’s recall that, in March this year, the Russian Association of Forex Dealers, a self-regulatory organization for the FX industry in Russia, has detected a number of illegal Forex entities operating from the “Moscow City” finance center.

Read this next

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

<