Japan's MoF Bureau Warns against Two Unregistered Brokers

The Kanto finance bureau of Japan’s Ministry of Finance (MoF) has today issued two parallel updates on its website warning against two entities - Y Marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term Services Co Ltd, and Gold Pegasus LTD.

The firms had made solicitations under YBinary and Gold Pegasus 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, respectively, and the circular highlighted that the entities are lacking registration with the regulator. It cited local supervision rules supporting the advisory warning to clients.

The circular from the Japanese regulator warns that Y Marketing Service Co Ltd, described as located in the UK under the address 20-22 Wenlock Road, London, England, had no known representatives, and that the name “YBinary” was associated with its offering.

The parallel circular today from the Kanto finance bureau also warned about Gold Pegasus LTD. It has its director listed as Kenichi Kobashi, with a post office box address in the BVI as follows, P.O.Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands. Remarks included that its services was provided under the name Gold Pegasus Forex, and offered OTC derivatives transactions online.

the warnings highlight that the two companies mentioned lacked any registration with the Japanese regulator

A facebook post appears to link Kobashi to Gold Pegasus: the url mentioned in the post returns a website that lists the address mentioned in the above warning. The same public facebook profile linked his name to two additional sites including mt4.client.jp.

In addition, cached versions of the url gpfx-ins.com/content/about.html mentions the offering, yet currently that site is returning a page saying that the firm has ceased its business since February 15th.

It says: "We know this comes as disappointing news to our clients, but rest assured that we will do everything we can to take care of each of you in manner of good faith." It's not clear where client funds were held, or what their fate will be if this story unfolds further.

Both warnings from the regulator disclosed how the information was obtained from solicitation materials and could therefore possibly be incorrect or false. Nonetheless, the warnings highlight that the two companies mentioned lacked any registration with the Japanese regulator and this prompting it to inform clients in Japan of the risks of dealing with unregistered firms.

A link to a file from the Japanese Financial Services Authority (JFSA) mentioned both companies in the announcement and which were added to the list of prior warnings.