Control over the forex market and forex advertising is getting stricter around the world to provide investors with a higher level of protection.
Kazakhstan will start regulating fx trading in 2021
As the number of consumer complaints has been growing, financial regulatory authorities in Kazakhstan have decided to get Kazakhstan’s over-the-counter (OTC) market under control. The regulator has initiated legislative amendments under which only licensed brokers and dealers will be authorized to provide consulting and information services regarding OTC transactions in the fx and stock markets.
Сontrols on forex activities in Kazakhstan might, therefore, come into force already in 2021.
- Read more: What is a forex license needed for?
Forex dealers in Belarus banned from “trading”
Significant amendments to Belarusian law “On advertising”, which will affect the OTC forex trading industry as well, have been approved and are about to come into force.
- Advertising of forex companies and related consulting, educational, training services must include a warning notice about the risky nature of transactions with cash-settled OTC financial instruments as well as about the inextricable connection between the possibility of making a profit and the risk of incurring losses.
- Every advertisement on websites of forex dealers must include a warning stating that neither the ownership of underlying assets nor any other corresponding rights are transferred to clients.
- Advertisements must not state or imply that forex trading can guarantee generation of income.
- Forex dealers must not use such words as “deposit”, “loan”, “account”, “trading” and their derivatives in advertising.
Licensed forex dealers are expected to switch to the new advertising rules in July 2021.