Ukrainian broker Forex MMCIS is reportedy in some kind of crisis. After a warning from Malta Financial Services Authority (MFSA), Forex MMCIS introduced anti-crisis measure that limits clients withdrawals.

Ukrainian broker Forex MMCIS is reportedy in some kind of crisis. At first, many people is said to have a multitude of problems with the broker. Later, the broker with online address at forex-mmcis.com is mentioned in a warning from Malta Financial Services Authority (MFSA). And just yesterday, Forex MMCIS introduced anti-crisis measure that limits clients withdrawals.

Forex MMCIS Crisis

Regulation Tangle

We were alerted to Forex MMCIS crisis at first by an article in forexmagnates that mentioned rising client complaints toward the broker in various forums and the possibility that the broker is experiencing financial difficulty. Then on Monday (6/10), Malta Financial Services Authority (MFSA) singled out Ukrainian forex broker Forex MMCIS Group in its public warning. The warning alerted people to be wary in dealing with Forex MMCIS. To be precise, the MFSA stated that, Forex MMCIS Group is not licensed nor awaiting to be licenced by the Malta Financial Services Authority to provide any type of financial service including foreign exchange service.

Prior to the MFSA warning, Forex MMCIS has insinuated that it is in the process to be licensed in the Europe, and that the regulator will be MFSA. Therefore, the warning effectively disprove Forex MMCIS claim.

This is not the first time Forex MMCIS tangled with higher authority in forex industry either. Back in May, leaprate reported that Forex MMCIS is being blacklisted by Russian self-regulatory group for OTC trading, CRFIN. One of the reasons quoted by CRFIN is that Forex MMCIS guarantees return, as it promises a stable yield of 10% per month.

It needs to be noted that Ukraine currently does not provide sufficient regulatory assurance for forex brokerage services. Forex MMCIS website itself displays a certificate that mentioned they are being regulated in St. Vincent and the Grenadines, a known offshore island. However, the certificate does not actually certify Forex MMCIS as a company that provides financial services, just that it is an international business company incorporated in St. Vincent and the Grenadines.

 

Withdrawal Limits

In the day following MFSA warning, Forex MMCIS announced an anti-crisis measure consisting of four points:

  • All withdrawal requests submitted by clients of the company before the date of issuing this order and not yet sent to payment are cancelled and deleted.
  • The period of withdrawal requests processing is extended from 3 to 7 days.
  • Until the crisis is over, the temporary limit for the maximum amount in a withdrawal request is introduced – no more than USD 200.
  • Until the crisis is over, the temporary limit for the number of withdrawal requests is introduced. One person may not submit the second withdrawal request earlier than in 7 days after the first one was submitted.

In its company news, Forex MMCIS President, Roman Komysa, said that the measure is directed to stop panic and bring order back into the company operations. He promised that when panic has subsided, withdrawal limits will be increased or cancelled. 

Forex MMCIS is less known in Asia and a large portion of its clients are apparently based in Russia and Ukraine. However, its website is also available in Chinese, and so there is quite high possibility that there are Forex MMCIS clients in Asia as well. Therefore, we would like to remind you, our beloved readers, that guaranteed profit in forex trading is inexistent. If you want to succeed in this business, then practice diligently and manage your trading carefully.