While regulators in other parts of the world are tightening rules and vigorously warning offenders, Russia seems content in letting status quo in forex industry to go on. Earlier today (21/10) Leaprate reported that Russian Duma postponed discussion in Forex bill for the sixth time due to unknown reasons.

While regulators in other parts of the world are tightening rules and vigorously warning offenders, Russia seems content in letting status quo in forex industry to go on. Earlier today (21/10) Leaprate reported that Russian Duma postponed discussion in Forex bill for the sixth time due to unknown reasons.

Russian Forex Bill

Russian amendment of forex regulation has been scheduled to be talked in the lower house assembly (State Duma) since March this year. The amendment is expected to include leverage cap and advert restrictions. There were also rumor that forex brokers based on dozens offshore financial centres might not be welcomed by the new bill. However, reading for the bill has repeatedly postponed with undisclosed background.

Meanwhile, lax regulations in the area means that many dubious forex brokers are freely operate and gain traction. It was just a few days ago that forex broker MMCIS that mainly operates in Ukraine and Russia reported to be embroiled in regulation tangle and introduced 'anti-crisis measure' by limiting clients withdrawal. And today, another Russian-based questionable entity is reportedly fallen. Leading forex industry news portal, Forexmagnates, mentioned that ForexInn has suddenly ceased operations, gone offline, and left many clients complaining in social media and online forums. Additionally, there seemed to be a number of other companies currently in operation although they are blacklisted by Russian forex industry self-regulation bodies like KROUFR and CRFIN.

These reports underline the need for clear and firm governmental guidance for leveraged trading industry in general, and online forex trading in particular. The absence of such regulations would leave clients in the lurch, as practically everyone could put up fraudulent company and scam people out of their money. Russia is where many forex brokers and other forex-related service providers based in, and that makes the need for proper regulation is especially urgent before the entire region acquire an even worse reputation.