It’s been another busy week in the foreign exchange (forex) and cryptocurrency space, with a lot of developments taking place. You can stay up to date with our best-of-the-week analysis.
VISA and Mastercard Continue Global Crackdown on Forex
More bad news for FX/CFDs brokers, who are experiencing a growing difficulty in processing clients’ payments via Mastercard and Visa. Both credit card giants have been tightening their demands towards brokers, concurrent with the regulators’ toughening stance, and recently demanded the companies show that they are allowed to charge the cards of overseas clients. The brokers must now provide legal proof to the card companies that they are allowed to service customers from outside of Belarus.
Nomura CEO Warns of Job Losses Ahead of a No-Deal Brexit
As Brexit nears (God knows when and how this ends up happening), foreign financial giants working in Britain are voicing their concerns.
Koji Nagai, the CEO of Nomura said earlier this week that the most likely upcoming no-deal Brexit will bring some major instability to the firm’s UK branch. Japan’s biggest brokerage and investment bank may cut as many as 3,000 of its staff in Britain. This possible move (and others) comes as the company prepares to execute a plan to cut more than a $1 billion in a downsizing program.
Scammers Gonna Scam: Paxful CEO Speaks on Nigerian Controversy
Finance Magnates’ Rachel Mcintosh recently spoke to Paxful’s founder and CEO Ray Youssef about current and future projects.
She also addressed the severe claims recently raised against the Estonia-based cryptocurrency exchange. According to a several news outlets, Paxful blocked a number of its Nigerian users from accessing millions of dollars’ worth of cryptocurrency that was stored inside the exchange.
“We recently identified indicia of potential activity in violation of our Terms of Service on our platform involving certain Nigerian accounts and we took appropriate action to rectify these issues.”
INTL FCStone Launches Multi-Asset Prime Brokerage
INTL FCStone has announced this week it is launching a new prime brokerage division. INTL FCStone Financial, as the new branch will be called, will offer trade in the US and global equities, options, futures, FX, and fixed income.
The new Prime Brokerage team within INTL FCStone Financial Inc. will be based in Atlanta. It will be led by Douglas Nelson, Michael DeJarnette, and Nicholas DeJarnette, each with the title of Managing Director and Co-Head.
Michael DeJarnette and Benjamin Brown who is leading Business Development of the new PB unit. “INTL FCStone provides us with a combination of infrastructure and autonomy that allows us to create a superior client experience similar to what was available in the early days of the prime brokerage business,” said Brown
Saudi Arabia Issues First License for Forex Trading
The Kingdom of Saudi Arabia is the latest country to allow forex trading to its citizens, ending a long period of being virtually isolated from the global industry. On Thursday, Riyad Capital – a local broker – received a permit to offer FX trading by the Saudi Capital Markets Authority.
This move is expected to accelerate the transition of the MENA region (and more specifically the GCC area) into a lucrative forex market.
Will EU’s New AML Laws Finally Refute Crypto’s Dirty-Money Image?
The infamous connection between cryptocurrency and malicious practices like terrorism, drug trafficking and money laundering are nothing new. But recent regulatory moves hope to break this tie, or at least diminish it. Such is the case with EU’s recent AMLD5. The new set of directives elaborate on the needed KYC processes and other anti money laundering measures crypto firms (mostly exchanges) are requested to undertake.