Finance Feeds logo

Russian c-bank nears closure of investigation into fraudulent Forex companies

Maria Nikolova

The central bank will soon publish the results of its investigation into a number of fraudulent Forex brokers.

The Central Bank of Russia is nearing completion of its investigation into a number of fraudulent Forex companies. According to Valery Lyakh, Head of the Bank of Russia’s Department for Countering Malpractice, who was speaking to Russian newspaper “Rossiyskaya Gazeta”, the regulator will soon publish the results of its probe into a number of illegal Forex dealers (the official designation for Forex brokers in Russia).

The entities in question have no licenses to offer Forex services in Russia and are targeting Russian clients using foreign websites. The damage caused by their activities exceeds several billion rubles.

Although countering the activities of these entities is difficult, the Bank of Russia has managed to transfer 142 cases of illegal FX companies to the prosecutors’ office last year. Mr Lyakh said that the Bank of Russia is seeking to accelerate and simplify the procedure for blocking of websites of scammers.

The Central Bank is pushing for more powers when it comes to taking down or blocking access to such fraudulent websites. A bill drafted by the Ministry of Сommunications and Mass Media proposes amendments to the Law “On Information, Information Technologies and Information Protection”. The bill aims to help the Russian authorities tackle financial fraud executed via the Internet. Quite often, Russian clients are targeted by foreign companies who offer their services through online platforms without having offices in Russia and without having the necessary Russian licenses.

The bill will grant the Bank of Russia powers to block access to websites of fraudulent financial companies, including non-licensed overseas FX entities, targeting Russian clients. In September last year, the Ministry of Economic Development published a positive assessment of the bill.

Companies willing to offer OTC FX services to Russian clients have to obtain Forex dealer licenses from the Russian central bank. Thus far, only eight companies have done so.

Subscribe

Read this next

Digital Assets

FINMA-regulated digital asset provider Taurus expands into Germany

This expansion follows recent moves by BaFin to accelerate the licensing of crypto custody services, aiming to boost market confidence. Following this, several new licenses were issued, notably to Commerzbank, making it the first full-service financial institution in Germany to receive a crypto custody license.

Inside View

Stocknet’s Nick Hall defends gamification as trading platform market set to hit $15.34b by 2030

“The growing popularity of gamified trading has the potential to tackle this financial literacy gap. Rather than simply giving users unfettered access to markets and letting them figure things out for themselves, platforms can offer virtual skill games and challenges to help educate traders and prime them for success.”

Inside View

Infographic: Interest rate and FX derivatives are driving rise of OTC derivatives market

These trends suggest a growing and evolving OTC derivatives market, with an increased focus on risk management and regulatory compliance. The rise in clearing rates, along with the increased initial margin requirements, reflects a more cautious approach to risk in the financial services industry.

Market News

Bank of Canada’s Final 2023 Policy Update on the Canadian Dollar and Future Monetary Landscape

The Bank of Canada’s final policy update for 2023, as reported by Bloomberg, had a relatively subdued impact on the performance of the Canadian dollar, especially when compared to the discernible market reactions following prior BoC policy decisions throughout the year.

Inside View

DTCC’s Systemic Risk Barometer Survey found 2024 US Presidential Election as a top risk

U.S. political uncertainty, particularly regarding the 2024 Presidential Election, has emerged as a key risk, with 51% of respondents highlighting it as a major concern. This reflects the potential impact of election outcomes on market conditions and the industry.

Executive Moves

Options Technology promotes Laura McCann to CFO

“Laura’s promotion to CFO is the next stage in our long-term strategy of building a world-class finance team servicing the global business from our Belfast office. Back in 2016, Jon took on the challenge of laying the groundwork for that vision. Laura has been an integral part of the strategy from day one.”

Digital Assets

Thailand’s crypto economy under the spotlight: a report by HashKey Capital

“I’m excited by the rapid expansion of Thailand’s Web3 sector. With over 3 million overall crypto users and 600% growth in the market in recent years, the dynamism in our DeFi and NFT sectors is clearly evident. Thailand is increasingly becoming a hotspot for digital nomads, drawn by our crypto-friendly policies, affordable living costs, vibrant food and beverage culture and diverse cultural landscape.”

Retail FX

Webull Australia offers 5.4% yield on uninvested cash

“US dollar money market funds are heavily regulated, meaning client funds are managed in a safe, reliable and trusted environment, which is of critical importance to us, and continues to remain top-of-mind for our clients.”

Digital Assets

Bybit welcomes Ethena’s USDe, a decentralized stablecoin utilizing delta-hedging staked Ether

“Our collaboration with Ethena Labs represents our commitment to solving some of the biggest challenges in crypto today, not least, the creation of a decentralized stablecoin. The integration of USDe on Bybit expands our stablecoin offerings, providing our users with an array of uncorrelated solutions accessible from our Unified Trading Account.”

Bybit
<
✖