As the end of the year gets closer so does the deadline for obtaining a Russian Forex dealer license or exit the Russian Forex market. However, the Bank of Russia, the Megaregulator responsible for the oversight of the Forex industry, seems to be warming up to postponing the licensing deadline.
Bank of Russia’s Deputy Governor Vladimir Chistyukhin told media on Wednesday that the regulator is willing to agree a new schedule for implementing the Russian Forex law. The majority of its clauses became effective on October 1, 2015, but they seem to be harsh for the industry and market participants have pushed for more time to be able to comply with the legislative requirements.
The market participants seek a grace period until the end of 2016 to obtain the coveted licenses. This means postponing the licensing deadline for a year.
The Bank of Russia needs up to 60 days to review Forex dealer license applications. Thus far, only one company – FINAM, has stated that it has applied for such a license.
Mr Chistyukhin said that many Forex companies are reluctant to apply for Forex dealer licenses as they simply dislike the Forex law in its current form. He mentioned the limit on maximum leverage (at 50x) as an example.
Russian information agency “Interfax” says that the Bank of Russia received circa 500 complaints regarding Forex companies (Forex brokers aka Forex dealers) during the past two years. (Have in mind that the complaints were filed while the central bank was not yet officially in charge of the Russian Forex industry.) More than 1,000 Forex brokers are active in Russia at present.