Financial Supervision Agency of Kazakhstan is advocating for the introduction of regulation of the Forex market as Kazakhstanis complain more often about forex brokers.
October 14, 2020 | AtoZ Markets – Against the backdrop of the COVID-19 pandemic, the financial regulator in the Republic of Kazakhstan has observed that the number of complaints about forex brokers is growing. With this headline, a TV report was released on the eve of the first Kazakhstani multimedia business news channel “Atameken Business“.
Forex brokers activity not yet regulated in Kazakhstan
During the lockdown period, many Kazakhstanis were repeatedly tricked by the so-called forex brokers and other unlicensed intermediaries in the financial market. According to the Agency for Financial Supervision, many fell for their trick due to the drop in incomes of the population because of the pandemic and the desire to quickly earn extra money.
Forex brokers supposedly assist traders to conclude transactions on the currency exchange. However, their activities are unregulated in the country. Also, unlicensed intermediaries accumulate investments for management. As a result, the channel says the number of criminal offenses under the article “fraud” is growing. The report note:
“Apartments, savings, and even loans in the bank … Two years ago, residents of Almaty brought everything they could to scam brokers in exchange for promises to increase their fortune. In relation to one such case, according to an official representative of the Almaty Police Department, by order of the head of this Department, a special investigative and operational group was created.”
How to protect yourself from scam brokers
The director of the Agency for Financial Supervision of the Republic of Kazakhstan has strongly advised Kazakhstanis on how to avoid falling victims to scam brokers.
“In order not to be victims of fraudsters, it is necessary to check the legitimacy of the activities of a particular company before concluding an agreement and especially before transferring money to their accounts. Citizens should, first of all, check in publicly available sources of information whether a given company has a license. The investor should study the registration documents and the financial condition of the company.
While the activities of forex brokers in Kazakhstan are not yet regulated, information about licensed brokerage offices can be found on the website of the government agency.
According to the report, the Agency for Financial Supervision is currently planning to amend to the Regulatory Acts. Among them is licensing of forex intermediaries and issuing brokerage licenses to banks.
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