Forex laws in Russia

Forex laws in Russia

Forex laws in Russia

Until recently, the Russian authorities did not pay any attention to the activities of Forex in the Russian Federation. The Ministry of Finance of the Russian Federation in the summer of 2012 created a bill providing for the regulation of the foreign exchange market and, starting from January 1, 13, it should fully work. The first law about Forex in Russia required all market participants to operate without any license, but a simple permission on the part of dealers. However, all of them must own capital in the amount of 35 million rubles. Those Forex companies that did not get permission to operate wanted to ban their advertising campaigns.
Forex law in 2013

In April 2013, another draft law was submitted to the state Duma, which provided for legal regulation of Forex.

Capital requirements have changed, and in a larger way. Also, a Forex company should be required to participate in the self-regulatory organization, pay membership fees and other contributions. At that time, the purpose of this draft law was partly to protect a private client, as well as to transfer regulatory control over the Forex market to a self-regulating structure. In fact, all power has passed to the largest Forex companies.

This law should have affected the smallest companies in this area, which will not be affected by legalization.

On June 11, 2013, the state Duma adopted a draft law in the first reading that defines such concepts as "Forex" and "Forex dealer". In addition, the Forex dealer, within the framework of the adopted law, should develop rules for performing currency operations on the Forex market. All disputes arising between clients and Forex dealers should be considered in the arbitration court.

It is noteworthy that the main comment of the government to the text of this bill was not introduced. The government required that the pricing of all Forex transactions be transparent. However, no changes were made to the law. And still, the quotes were determined by the Forex companies themselves.
Forex law in 2014

The Russian government decided in may 2014 to actively fight fraudsters, including on Forex. The Second reading of the law on state regulation of the Forex market has passed, but it has still not been adopted.

According to legal acts, all Forex dealers will have to keep records of trading operations and contracts. They do not have the right to enter into unilateral agreements on the same transactions with different counterparties, change the terms of the agreement at their discretion, as well as the purchase price in order to change the sale price of the currency. The main purpose of this law is to protect ordinary clients from unscrupulous Forex companies.
Regulation of Forex dealers

Forex market regulation

A little later, on December 29, 2014, the State Duma passed the law on control of Forex dealers in the 3rd reading. Then Vladimir Putin himself signed it.

Forex companies have to provide their clients with services that are not private entrepreneurs. Companies must obtain a specific license and be members of the SRO.

According to the legal norms that provide for state regulation of the Forex market, the company must have at least one hundred million rubles of its capital. If the funds of clients placed on nominal funds exceed 150 million rubles, then their funds should be more than this amount by 5%.

The law also affected leverage. It must be at least 1: 50. The Central Bank of the Russian Federation has the right to increase the amount of leverage, but not more than 2 times. On its website, the Forex dealer must notify its clients of possible risks when trading assets on the Forex market. Legal entities registered in offshore companies or those participants whose license was revoked in the past are not eligible to apply for the position of founders of a Forex dealer.
Forex law in 2015

Regulation of the Forex market at the legislative level came into force on October 1, 2015. The law on Forex in Russia assumes the implementation of the regulations of 2014.
Forex law in 2017

It took a little more than 9 months for the Forex jurisdiction in the Russian Federation to start working. It happened on October 12, 2016. The Central Bank of Russia has assumed responsibility for regulating the Forex market.

Most likely, the law on Forex in Russia 2017 will involve the creation of a second SRO, while the NAFD and AFD will fight each other.

It is also expected that in 2017, the market will leave unscrupulous Forex dealers or those who will not be able to meet a number of requirements of the Central Bank. In other words, this year companies that provide currency trading services will fight among themselves for their customers.

However, the government of the Russian Federation has approved a number of regulations for Forex dealers, the law on Forex in the Russian Federation is still declarative. The penalty for violation of the rules is not specified, but there are still risks of abuse. Using the Internet, you can circumvent any standards of state control. Most Forex brokers operating in the Russian Federation have foreign legal registration and, in fact, are not subject to the Central Bank.

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