Bank of Russia to block websites of unregulated forex brokers

The financial regulator in Russia has decided to tighten the noose on unlicenced companies dealing in forex, it seems. The regulator will block the websites of these companies. This is according to Artem Sychev, the Deputy Head of the Central Directorate for Security and Information Protection at the Central Bank of Russia (CRB) during an interview with the news agency TASS.

The CRB wants some laws amended to cater for this. The proposed law seeks to bar companies that target Russian investors but are not authorized carry out forex business. The websites will have their addresses listed in a special register, automatically. The register will be kept by the Federal Service for Supervision in the sector of Telecom, Information Technologies and Mass Communications

The Central Bank of Russia will have the mandate to block financial websites that are deemed harmful. Sites with domain names ending .ru, .su and .рф that are not authorized to trade are particularly at risk of being blocked. The bank already signed an agreement the administrator of domain names in Russia. The regulator will not need to seek approval from courts, according to the new law. More domain names are going to be included in the list.

The bank of Russia hopes to use these measures to protect members of the public from rogue companies that operate unlawfully. The new rules will stem out financial fraud because it will make it hard for these unlicensed companies from attracting investors in the first place. The new financial atmosphere will create an environment for healthy competition amongst the licensed companies.

It’s good to note that only companies that hold licenses from the Central Bank of Russia to trade in forex are allowed to trade with Russian. Any firm operating without this forex license would be doing so unlawfully and risks closure, and being barred from trading indefinitely. Currently, only 8 forex firms are approved by the CRB. : Teletrade,Forex Club, Alpari, InstaForex, VTB 24, Finam Forex, TrustForex, and Promsvyazbank.