Russian authorities issue Bill to block Russian Forex unregulated websites

Earlier this July, Central Russian Bank official stated that Russian Forex law to limit beginner Forex traders can soon become a reality. Meanwhile, Russian officials published a Bill that will affect Russian Forex unregulated websites.

14 July, AtoZForex The Russian financial markets’ regulators have been working on the ways to tackle the activities of financial services companies. Specifically, the Russian Central Bank has been planning to regulate the Forex brokers that are targeting Russian clients without the regulatory permission.

Russian Forex unregulated websites

The Forex sector in Russia got officially started in December 2014. That time, the Russian president Vladimir Putin signed the profiling law. The guidelines are intended for the Forex firms that are willing to provide their services to Russian customers. They also apply to those, who intend to get a license of Forex dealer.

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Back in February 2017, the Russian regulator was considering establishing requirements for the overseas Forex companies’ websites targeting Russian clients. Also, Vladimir Chistyukhin said that they can only block websites in case their page content does not follow the law.

Just yesterday, the central bank made the crucial step towards to stricter Forex regulation. The Russian Ministry of Сommunications and Mass Media has issued a bill.  The bill outlines the changes to the Law “On Information, Information Technologies, and Information Protection”.

One of the amendments describes the reasons for including domain names in the special online resources list. The list comprises information about the websites and domains whose distribution is prohibited across Russia. Thus, when the domain is being added to the registry, the access to this particular website is blocked by the Russian regulators.

How will the new law impact Forex brokers?

Moreover, the Bank of Russia will have the right to decide whether to include the website in the registry. In case the watchdog believes that the website contains information that is related to the provision of financial services in Russia with no license from regulators, the website will end up on the list.

These amendments can affect Forex brokers largely. This is due to the majority of Forex firms that aim to solicit to Russian investors do so online. Moreover, many of these entities lack the necessary Forex license from the Bank of Russia. So far, there are only 8 brokers is Russia that possess the proper registration.

The Ministry of Сommunications and Mass Media has commenced the public consultation in regards to the Bill.

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