Turkish Watchdog Blocks Access to MXTrade’s Website

Turkey’s Capital Markets Board (CMB), the main financial regulatory and supervisory agency in the country, has blocked Turkish internet users from accessing MXTrade's website. The action was taken following an investigation by the CMB that allegedly found that the broker was targeting clients in Turkey despite not having a local license to provide financial trading services.

The move against MXTrade comes after similar warnings from other European authorities. In September, Cyprus Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission warned that MXTrade is operating without a licence from it or any other EU regulator. A month before, Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) had issued a warning against the broker for soliciting clients without the proper authorization to do business. The CONSOB said it found that neither Lau Global Services Corporation, nor its brand MXTrade, are authorized to provide investment activities in Italy.

As this case demonstrates, Turkey has one of the most regimented Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term markets in the world and the Turkish watchdog is also very vigilant. While other countries' regulators usually just issue warnings and at most issue fines, the CMB actually blocks access to websites that it does not approve of. This paternalist approach may protect clients from trading with unregulated entities, in a way that is not possible in freer countries, but it also might lead Turkish traders to use VPNs to go around the country's internet censorship system.

Back in August the CMB levied a fine of nearly $30k against Isik Menkul Degerler, according to a CMB statement. Isik Menkul is a financial services provider, with a number of smaller subsidiaries, including IsikFX, its Turkish FX brokerage arm. The CMB imposed a $30,670 (TRY 89,628) fine against the Turkish company after the regulator took legal action following a violation of its Principles of Investment Advisory Activity.