Russian regulators take aim at Forex education centers

Maria Nikolova

The Federal Antimonopoly Service will ask the Ministry of Education and Science to take away the licenses of education centers that offer Forex training services without having the necessary permission from regulators.

Education centers that have the permission to provide training in general but do not have the right to offer Forex services, including FX education services, have become the latest target of Russian regulators.

Andrey Kashevarov, deputy head of the Federal Antimonopoly Service (FAS), has noted the emergence of organizations that offer Forex training services, gather substantial sums from people and often act as “umbrellas” for foreign FX companies. Mr Kashevarov was quoted by TASS as saying that the regulator will go after such centers, as their offering may be considered as Forex advertising and, hence, requires a Forex dealer license.

He said the Central Bank of Russia and FAS may turn to the Ministry of Education and Science to take away the permissions of education centers that illegally offer Forex training services.

As FinanceFeeds has reported, FAS is now considering a prohibition of any form of targeting and luring Forex clients in Russia unless the entity doing this has a Forex dealer license. Forex education centers will also be covered by the new rules. The proposals will be included in a document, which should be ready by the third quarter of 2017 and which will be addressed to the Bank of Russia and/or the Russian government.

The goal of the new rules is to spur growth and development of the market for the services of Forex dealers, as well as to create conditions for competition in the industry.

In the meantime, the volume of rules for licensed Forex dealers (the official designation of Russian Forex brokers) continues to grow. On Monday, the Central Bank of Russia published a Directive, providing instructions on a number of reports that Forex dealers have to submit on a regular basis and the deadlines for submitting these reports.

Thus far, only eight companies have managed to secure Forex dealer licenses in Russia.

Read this next

Inside View

Industry Leaders Share Insights on Framing Crypto Payments into FX Brokerage Business

While the allure of crypto payments is strong, caution is essential. The potential benefits in terms of speed, lower fees, and blockchain efficiency need to be weighed against the risks associated with cryptocurrency volatility. 

Institutional FX

FXSpotStream volumes hit 14-month high in November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2023, which moved higher on a monthly basis.

Digital Assets

Circle denies ties with Palestinian groups, TRON founder

Stablecoin issuer Circle has denied allegations that it facilitates funding for terrorist organizations.

Retail FX

CySEC hits operator of Titanedge, TradeEU with €90,000 fine

The Cyprus Securities and Exchange Commission (CySEC) announced that it has imposed a fine of €90,000 on Titanedge Securities Ltd due to shortcomings in their regulatory obligations.

Institutional FX

Cboe FX volumes retreats slightly in November 2023

Cboe’s institutional spot FX platform today announced its trading volume for the month ending November 2023, which took a step back after a strong rebound in October.

Institutional FX

Alpha Group seals Cobase majority acquisition

Foreign exchange service provider Alpha Group International plc (AIM: ALPH) has finalized its acquisition of Financial Transaction Services, operating as Cobase.

Digital Assets

TMNG Tokens Successfully Listed on MEXC Crypto Exchange

TMN Global proudly announces the successful listing of its native TMNG token on the MEXC crypto exchange, effective December 1st, 2023. This strategic partnership marks a significant milestone for TMN Global in the crypto space.

Institutional FX

Marex completes acquisition of TD Cowen’s PB business

London-headquartered commodities broker Marex has completed the acquisition of TD Cowen’s prime brokerage and outsourced trading business, which will be integrated into Marex’s capital market division. This division was established following the acquisition of ED&F Man Capital Markets in 2022.

Digital Assets

Talos introduces decentralized liquidity and onchain settlement with Uniswap and Fireblocks

“At the cornerstone of the DeFi ecosystem, Uniswap has the breadth of assets and depth of liquidity that institutional traders need. And to have this partnership powered by Fireblocks, a digital assets infrastructure provider trusted by some of the most renowned institutions, is very fitting.”