March 5, 2019, | AtoZ Markets - The Vanuatu Financial Services Commission (VFSC) has announced its latest regulatory requirements for the forex brokers who hold the VFSC licence in Vanuatu, along with including those requirements for new applicants, as per media resources.
The new modifications the licensed brokers need to consider, include having a local presence in the island, changing a set of instruments that brokers can provide, in the light of the volatility the cryptocurrency is undergoing at the moment.
Furthermore, the regulator added that the director of the brokerage firm should be local, and that is above the basic requirement provision the VFSC set in 2016 when it first started controlling the market, which dictates that the broker should deposit with the regulator not less than $50,000 to be allowed to practice the business.
The above-mentioned bundle of changes comes in pursuits for tightening the margin for those brokers who used to look at the island as an open space for practicing the profession without enough legal observance.
AtoZ Markets tried to reach out to the regulator for having comments on the topic, however, our phone call was not answered.
Vinuatu is no longer that offshore forex paradise!
Vanuatu used to be one of the best bets for offshore regulation seekers, with a stance to be friendly toward the forex and CFDs brokerage business. However, topping up in the regulation requirements seems to be coming in harmony with what ESMA’s wind, where the European regulator has been tightening its regulations over the forex brokerage market for quite a long time now, renewing its restrictions on binary options periodically every three months.
Binary options allow traders to benefit from price fluctuations in multiple global markets and bear little resemblance to traditional options, featuring different payouts, fees, and risks, as well as a unique liquidity structure and investment process.
ESMA is the official financial regulator in the EU that governs the forex trading industry, which means this also applies to the market in the UK up until the present day, until the UK leaves the EU after an agreed Brexit deal.