Russia’s c-bank initiates blocking of 400 websites of unlicensed entities

Maria Nikolova

Many of the websites are run by companies offering financial services to Russian clients, without having the necessary licenses from the Bank of Russia.

stealing leads

The Bank of Russia has targeted the websites of companies that illegally target Russian clients. According to a press release, published by Russia’s “Megaregulator” today, the central bank has initiated the blocking of 400 websites, many of which were related to phishing or to spreading of malware.

The domain names blocked include ones by fraudulent companies which offer financial services to Russian clients without having the necessary licenses issued by the Bank of Russia. These websites belong to companies active in the FX industry or banking, and dealing with these companies can lead to substantial losses, the Bank of Russia warns.

The regulator also notes that in cases where the company is registered abroad and has no Russian license, investors are not protected.

The Bank of Russia said it plans further measures to counteract the illicit practices in the financial markets.

In the meantime, the central bank has cleared another hurdle towards getting powers to block websites of overseas FX brokers that try to lure Russian clientele without having the proper license. The Ministry of Economic Development has published a positive assessment of the bill drafted by the Ministry of Сommunications and Mass Media, which proposes amendments to the Law “On Information, Information Technologies and Information Protection”. The next step is a review of the document by the Russian government.

In June this year, Artem Sychev, Deputy Head of the Central Directorate for Security and Information Protection at the Bank of Russia, explained that for the time being the Russian authorities have the right to block websites with .ru, .su and .рф domain names. If a company targets Russian clients without having the permission to do so, its website address is entered into a special register operated by the Federal Service for Supervision in the Sphere of Telecom, Information Technologies and Mass Communications (Roskomnadzor) and is then blocked.

Mr Sychev noted back then that this procedure should be amended to cover websites with other domain names, apart from the above mentioned ones. This would enable protection of the rights of Forex broker clients, according to him.

Read this next

Institutional FX

Celoxica enters Australia to offer low latency market data and execution services in APAC

“There is a significant opportunity to deliver fast and efficient market access to APAC financial market participants, including trading firms, brokers, exchanges, and service providers. I am eager to extend our reach in this crucial market.”

Institutional FX

Cboe to launch four new Credit Volatility Indices (Credit VIX)

“The Credit VIX Indices are expected to provide new clear signals on bond market sentiment, and act as a new barometer of corporate credit risk in North America and Europe.”

Executive Moves

TradeZero hires Leo Ciccone as Chief Compliance Officer (CCO) for TradeZero Canada

“Leo brings to TradeZero broad and comprehensive experience coupled with deep business and regulatory relationships that will assist us in ensuring we meet and exceed industry best practices and to further our growth initiatives going forward,”

Institutional FX

Apex launches fractional fixed income trading for retail investors

“The ability for people – and not just high net-worth investors – to easily add fixed-income and diversify their portfolios is a game-changer.”

Institutional FX

MarketAxess launches Open Trading for EM local currency bonds

In an era where diversification and hedging against market risks have become imperative, this new feature could very well serve as a linchpin for international investors looking to diversify their fixed-income portfolios with EM local currency bonds.

Industry News

CFTC Chair Behnam’s keynote speech at FIA Expo 2023 focused on FX and Crypto frauds

Over the past fiscal year, the CFTC has levied more than $6 billion in monetary relief through various enforcement actions. The agency is also moving against entities falsely claiming to be CFTC-registered futures commission merchants (FCMs) and registered foreign exchange dealers (RFEDs).

Market News

Australia’s Trilateral Economic Ties with the US and China

Australia’s leading stock market index, the S&P/ASX 200, has been on a downward trend for the past three weeks. From a technical perspective, the price still remains in a consolidation, but the occurrence of lower highs indicates increasing selling pressure, and potentially a descending-triangle.

Digital Assets

Mirror Trading victims to recover 50%-60% of their money back

The liquidators overseeing the Mirror Trading International (MTI) pyramid scheme said they could start returning funds to victims once they receive a court ruling on how to handle claims.

Digital Assets

Celsius aims to start customer repayments in two months

Celsius Network, a crypto lender currently navigating bankruptcy proceedings, revealed its intention to begin reimbursing its customers before the year’s end. This disclosure was made during a hearing on October 2, where the approval of Celsius Network’s reorganization plan was being discussed.