UK Passes a Bill Recognising Crypto Trading as a Regulated Activity

Posted on by Adam Smith

The United Kingdom Parliament has taken a significant step towards becoming a crypto hub by adopting a new law that regulates digital assets and oversees crypto advertisements. The decision aims to position the country at the forefront of the rapidly evolving crypto industry.

UK Passes a Bill Recognising Crypto Trading as a Regulated Activity

The bill, known as the Financial Services and Markets Act 2023, has received Royal Assent from King Charles III on June 29, according to a press release issued by the government. The Act, which enables the regulation of crypto assets and stablecoins, has been hailed as a "Rocket Boost" to the UK economy, which has faced substantial challenges due to the COVID-19 pandemic and Brexit.

  • With the enactment of the Act, regulators such as the Financial Conduct Authority (FCA), the Bank of England, and the Payments Systems Regulator are now granted the authority to supervise and control financial activities involving digital assets and stablecoins. This move allows these regulatory bodies to implement new rules and safeguards in the digital sector to ensure their safe adoption in the UK.
  • The adoption of the Financial Services and Markets Act 2023 reflects the UK government's commitment to fostering innovation and creating a favorable environment for crypto-related businesses. By introducing comprehensive regulations, the government aims to strike a balance between protecting investors and consumers and supporting the growth of the crypto industry.
  • One of the key aspects covered by the new law is the supervision of crypto advertisements. Recognizing the increasing prevalence of crypto-related ads, the Act empowers regulators to monitor and regulate the content and dissemination of these advertisements. This measure aims to prevent misleading or deceptive promotions and to protect individuals from potential scams or fraudulent activities.
  • Moreover, the Act aims to provide clarity and legal certainty for businesses operating in the crypto space. By establishing a clear regulatory framework, the UK government seeks to attract crypto companies and talent, encouraging innovation and investment in the sector. (Learn more about UK financial Firms)

The decision to regulate digital assets and crypto ads aligns with the UK's broader strategy to leverage emerging technologies and maintain its position as a leading financial center. The government recognizes the transformative potential of blockchain technology and cryptocurrencies and aims to harness their benefits while mitigating associated risks.

As the crypto landscape continues to evolve, the UK's proactive approach to regulation positions it as a key player in the global digital economy. The new law sets the stage for a thriving and responsible crypto ecosystem, ensuring that the UK remains at the forefront of this groundbreaking industry.

MultiBank Group obtains CySEC CIF license for MEX Europe Ltd

Posted on by Adam Smith
MultiBank

Multinational Retail FX and CFDs broker, MultiBank Group, continues its global expansion with its recent receipt of a Cyprus Securities and Exchange Commission (CySEC) CIF license for its subsidiary, MEX Europe Ltd. The license, granted on May 22, 2023, marks another significant step in the broker's international growth strategy.

MEX Europe Ltd is set to manage the mexeurope.com website, focusing primarily on clientele within the European Union. To bolster this operation, the company is establishing an office in Limassol, Cyprus.

Chairman of MultiBank Group, Naser Taher, expressed immense pride in the acquisition of the CySEC license, acknowledging it as a reflection of the company's commitment to developing a world-class, regulated financial products and services ecosystem.

"MultiBank Group has been operating in the financial industry with an unblemished track record for over 20 years, and as such, it has built a reputation for providing the highest level of funds security, first-class financial services, award-winning technology, and products," Taher stated.

  • The unveiling of MEX Europe comes as MultiBank Group prepares to go public in 2023. The company has several innovative projects in the pipeline, including an inter-bank ECN trading platform for financial institutions and banks, a digital assets exchange regulated in Australia, a globally oriented digital payments processor, and an enhanced social trading application. The firm's aim is to create the world's first cross-asset ecosystem, bridging the gap between traditional and emerging forms of finance.
  • MultiBank Group last October secured licenses from the Securities and Commodities Authority (SCA) of the UAE and the Monetary Authority of Singapore (MAS). These recent acquisitions join an array of regulatory licenses from institutions such as ASIC, AUSTRAC, BaFin, FMA, FSC, CIMA, TFG, and VFSC. With 12 regulators, MultiBank Group assures a fully regulated and secure trading environment for its vast global clientele.

Last year, as part of its global expansion initiative, MultiBank Group moved its headquarters from Hong Kong to Dubai. The Group, comprising several entities, is heavily regulated across five continents by over 11 financial regulators, including those in Australia, Germany, Austria, Cyprus, Cayman Islands, UAE, BVI, Singapore, and Vanuatu.

With over 25 branches worldwide, an impeccable regulatory record, and a loyal customer base exceeding 1,000,000 users, MultiBank Group is poised to maintain its leading position in the global financial industry.

Spain’s CNMV Implements Marketing Restrictions and Margin Requirements for Leveraged Products

Posted on by Adam Smith
CNMV

The Comisión Nacional del Mercado de Valores (CNMV), Spain's financial watchdog, has introduced new marketing restrictions and margin requirements for leveraged products. The European Securities and Markets Authority (ESMA) has published an opinion on these product intervention measures, supporting the CNMV's efforts to protect retail investors.

Under the new regulations, the CNMV prohibits the offering of training, technical seminars, courses, or sessions related to leveraged products, excluding turbos, to retail investors. The aim is to prevent misleading or inappropriate marketing practices. Additionally, advertising communications on contracts for difference (CFDs) targeting retail clients are strictly forbidden, including the sponsorship of events or organizations. The CNMV has also implemented restrictions on remuneration policies and cash deposits by customers.

  • The CNMV's intervention measures specifically target certain futures and options, categorized as "other leveraged products." These products are defined as financial instruments where the maximum amount at risk exceeds the initial investment or is unknown at the time of subscription. However, turbo products are exempt from these measures, as the total amount at risk is equal to the amount invested.
  • The newly implemented measures require providers of high-risk products to close a retail client's open positions when the value of the positions is reduced to half the initial margin. This aligns with the existing measures for CFDs. Furthermore, these high-risk products will be subject to the same initial margin protection as CFDs, with a potential exception for products with non-crypto asset underlyings if the trading venue permits a lower initial margin requirement.

ESMA acknowledges that the CNMV's measures do not include a "negative balance protection" provision. Instead, the CNMV aims to mitigate the risk of negative balances by applying margin close-out protection and initial margin protection, ensuring consistent and prudent account-level closure of positions. However, ESMA highlights that the CNMV allows for a lower amount of initial margin compared to the existing measures for products subject to lower margin requirements by trading venues.

ESMA agrees with the CNMV's assessment that other leveraged products bear similarities to CFDs and acknowledges the risks associated with crypto assets. The EU regulator will closely monitor whether these products pose detrimental consequences for retail clients similar to those observed with CFDs.

The CNMV's proposed marketing ban aligns with the existing 2019 CFD Resolution enacted by ESMA. It prohibits the provision of payments or benefits related to the marketing, distribution, or sale of CFDs to retail clients. ESMA has previously supported this restriction.

ESMA encourages other National Competent Authorities (NCAs) within the European Union to monitor potential risks and consider similar measures in their jurisdictions. NCAs may take product intervention measures but are required to notify ESMA and other NCAs at least one month before the intended implementation unless urgent action is necessary.

The CNMV's proactive approach to protecting retail investors and addressing risks associated with leveraged products demonstrates its commitment to ensuring the stability and integrity of the Spanish financial markets.

Vienna Stock Exchange Integrates Stock, Indices, and Funds Data into TradingView

Posted on by Adam Smith
Vienna Stock Exchange Integrates Stock, Indices, and Funds Data into TradingView

The Vienna Stock Exchange has joined the growing list of TradingView data providers.

The Vienna Stock Exchange is one of the oldest in the world, being in business since 1771. It operates the Prague stocks exchange, provides infrastructure for other European exchanges (in Budapest, Ljubljana, and Zagreb), and strives to strengthen financial education in the region by organizing workshops and seminars every year.

The exchange provides liquidity and visibility to its listed companies, while investors get access to the global financial markets as well as the local market: to help market players evaluate the latter, the exchange launched its main index, the Austrian Traded Index (ATX). Today, the exchange lists 817 companies and keeps adding more.

And now, data from the Vienna Stock Exchange is accessible on TradingView: open the symbol search, type in the “VIE:” prefix, and see all the stocks, indices, funds, bonds, depositary receipts, and warrants available for analysis.

The TradingView platform reliably connects to hundreds of data feeds, with direct access to 1,357,880 instruments from all over the world.

Retail Investors Concerned About Domestic Economic Slowdown, eToro Survey Reveals

Posted on by Adam Smith
Domestic Economic Slowdown

In a recent quarterly survey conducted by eToro, it was found that the primary concern among retail investors revolves around the slowdown of their domestic economies. This worry surpassed fears related to inflation and the impact of geopolitical conflicts. The survey, which encompassed over 10,000 retail investors across 13 countries and three continents, shed light on the sentiments prevailing among investors in the second quarter of 2023. Notable participating countries included the UK, the US, Germany, France, and Australia.

Despite central banks raising interest rates to combat inflation, the global economies showcased resilience throughout the year. This resilience has contributed to the surge in stock prices. However, many retail investors no longer perceive a strong market opportunity. According to the survey report, retail investors are now preparing themselves for an impending slowdown. Various metrics employed by eToro to gauge investor confidence experienced declines during the quarter. Confidence regarding the portfolio, the global economy, and the domestic economy dropped by five percentage points, settling at 71%, 40%, and 45%, respectively. (Read our comprehensive review of eToro)

eToro highlighted that "the threat of a home market recession surged to become the biggest perceived risk among global retail investors (18%), while far fewer identified inflation (17%) or international conflict (12%) as the top risks."

Furthermore, eToro noted that while retail investors were quick to purchase stocks after the market hit bottom in October 2022, the majority are now adopting a contrarian approach. This means that most investors do not believe in the "bull market narrative." In fact, only 11% of the surveyed investors believe that the markets have entered another bullish period.

Explaining this shift in strategy, eToro stated that retail investors are employing a "two-pronged 'barbell strategy'" by continuing to invest in successful tech companies while also seeking opportunities in underperforming commodity and bank stocks.

Despite the prevailing concerns, the survey revealed that a significant number of retail investors (31%) increased their investment portfolios during the last quarter, with only 12% decreasing their investments. Moreover, 31% expressed intentions to allocate additional funds to their investments over the next three months. Conversely, approximately 11% of respondents planned to reduce the size of their portfolios during the same period.

The survey conducted by eToro provides valuable insights into the sentiments of retail investors, highlighting their apprehensions regarding the slowdown in domestic economies. As these concerns overshadow worries about inflation and geopolitical conflicts, investors are adjusting their investment strategies accordingly to navigate the changing market landscape.

X Moves Towards Crypto Payment Services

Posted on by Adam Smith
X Moves Towards Crypto Payment Services

X, previously known as Twitter, is steadily progressing toward introducing financial services for its users, prominently featuring cryptocurrency payments. The recent announcement of a license acquisition in Rhode Island reinforces this development.

According to data provided by the Nationwide Multi-State Licensing System (NMLS), Rhode Island granted X the Currency Transmitter License on August 28, 2023. This license pertains to the transfer and receipt of financial funds, encompassing both traditional fiat currencies, such as dollars and euros, and cryptocurrencies like Bitcoin and Ethereum.

Consequently, with this license, X is now equipped to extend transfer, custody, and exchange services for digital assets to its expansive user base. This achievement aligns with Elon Musk's aspiration of evolving X into an 'everything app,' a vision reflective of the broader trend among social media magnates, increasingly venturing into the payment sector.

This Rhode Island license isn't X's maiden venture in this arena within the US. Previous licenses were secured in Michigan, Missouri, and New Hampshire in July, enabling X to offer its payment services across seven US states.

Although the precise timeline and manner of the crypto payment service's launch remain under wraps, industry insiders hint at its similarity to PayPal's offerings. A significant point of interest here is Musk's history as one of PayPal's co-founders, which may influence X's direction in this domain.

Earlier this year, X had expanded its financial services spectrum by integrating with the social trading platform eToro (Read our detailed article about eToro). This collaboration enabled users to trade stocks and other assets utilizing the $Cashtag symbol.

Orbex and HonorFX are Delighted to Announce Their Strategic Partnership Agreement, Marking an Expansion into the Asian Market.

Posted on by Adam Smith

[Dubai, September 2023] Orbex, a leading global forex broker, announced today that it has entered into a partnership agreement with HonorFX, a forex and CFD broker with offices in Dubai and Malaysia. As per the terms of the new agreement, Orbex will grant HonorFX access to its acclaimed suite of trading products and services.

The partnership will enable Orbex to cement its position as one of the leading brokers in the MENA region and expand its presence in Asia and beyond. This strategic move will not only enhance Orbex's already impressive growth trajectory but also expand the range of trading opportunities available to its growing client base. At the same time, HonorFX clients will be able to benefit from Orbex's multi-regulated and award-winning trading environment.

It’s also worth noting that HonorFX clients were duly notified of the decision and the migration process is now reportedly underway. The move will give HonorFX clients access to some of the most competitive terms in the industry such as low trading costs, exclusive analytical tools, expert education, and access to trade over 400 trading CFD instruments including forex pairs, stocks, indices, cryptocurrencies, energies, metals and more.

Orbex Chairman Abdallah Abbas expressed his enthusiasm for the partnership, stating, "We are thrilled to extend a warm welcome to HonorFX clients as they become part of our Orbex family. We are confident that this collaboration will further elevate our competitive position and empower us to provide an array of exclusive advantages to traders worldwide. We eagerly anticipate collaborating with HonorFX and assisting their clients in reaching their trading objectives! As we embark on this journey of integration with our esteemed partners at HonorFX, it is imperative to clarify that our valued Orbex clients can expect their trading experience to remain seamless and unaffected throughout this process.

About Orbex

Orbex Global Ltd is a leading global investment services firm that provides traders with award-winning forex and CFD trading services with some of the most competitive conditions. Since its inception in 2011, Orbex has committed to providing access to first-in-class trading and investing solutions that are backed by leading education, expert research tools and the 24/5 multi-lingual support.

Vantage FX goes through a major rebrand

Posted on by bar
Vantage FX logo

One of the leading global CFD brokers, Vantage FX, has announced its rebranding. The idea is to reflect the company’s evolution into an all-encompassing, global financial services provider.

Head of Sales, Marketing and Partnerships of Vantage FX, David Bily has commented on the announcement: "The company’s rebrand and new tagline, “Trade your way” represents a significant step in the company’s evolution. We are redefining who we are, driving change and shaping the future of a pure client-centric financial services provider."

Vantage FX brand ethos has always been built on transparency, trust, credibility and an exceptionally strong service offering as a CFD broker. These are the principles that have kept the company not only running seamlessly for the past decade and growing rapidly over this time, but it is something that it is continuously evolving that will aid in delivering what company's clients truly want.

The “Trade your Way” tagline is to show that regardless of clients' trading style, preferred instruments or financial goal, the company got them covered. Vantage FX has extended its instrument offering, reduced the costs of trading, and also placed a great deal of emphasis on onboarding client service staff that can support the clients in an increasing number of languages.

Vantage FX team of developers have created a brand new multilingual website, client portal, and improved IB portal, all offering an engaging design, a very effective user experience, and a suite of new features and functions that have been implemented at the request of the  clients and partners. 

Bily has also added: "If 2019 is anything to go by, Vantage FX’s existing clients, as well as the new-comers are sure to benefit from what 2020 will bring. Vantage FX are in the process of introducing even more products through their already extensive global Share CFD offering, as well as implementing further improvements to trade costs and the infrastructure to support the increasing number of traders that are switching from other brokers, and those who are joining for the first time."

You can read our full Vantage FX review here.

Italy’s CONSOB warns against Go Capital FX and Swissinv24 brokers

Posted on by bar

Italy’s financial markets and services provider regulator CONSOB (Commissione Nazionale per le Società e la Borsa) has updated its list of forex brokers who are not licensed to operate in Italy. Go Capital FX and Swissinv24 are happened to get into the list. These firms have been offering investment services and activities to the Italian public without being authorized in the country.

Commissione Nazionale per le Società e la Borsa (CONSOB; Italian Companies and Exchange Commission) is the Italian governmental authority responsible for regulating the Italian securities market. The regulator is also responsible for the Italian stock exchange, the Borsa Italiana.

There is one and most important thing that companies have in common, they are both registered offshore, which doesn't actually add more trust to them. 

Go Capital FX logo

Go Capital FX is a Forex and CFD broker, owned by Lancelot Equity Ltd. and registered in the Commonwealth of Dominica. The broker claims to be located in Bulgaria, but for some reason provides Austrian contact phone number. However, Go Capital FX is not licensed in any of these countries. Moreover, it has been blacklisted by several regulators. 

As to the Swissinv24, this forex broker is registered in the Marshall Islands. The broker doesn't provide any information about its regulation and doesn't actually seem to be regulated. Despite it's "Swiss" company name, Swissinv24 has been banned in Switzerland by its local regulator FINMA.

It is now clear that the mentioned brokers should be avoided at all cost. You can check our full Go Capital FX and Swissinv24 reviews and also share your experience of dealing with these companies in the comments to this post.