Chinese clients of Cyprus regulated brokerage ACFX have expressed worries over the company’s decision to send out a note elaborating on some possible delays in the processing of their withdrawal requests. The brokerage sent a note to the company’s clients that their accounts are due for a screening.
ACFX claims that the action is necessary due to some clients engaging in risk-less arbitrage and realizing unfair gains on their accounts. Its clients in China are worried by the move as it is directly impacting the disposability of their funds.
However the company is scrambling to reassure them.
According to early reports in some local press, the offices of ACFX in Shenzhen and Shenyang have been closed for business. Finance Magnates has contacted representatives of ACFX for a comment on the matter.
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A company spokesperson stated: “Due to recent incidence of clients in China abusing the trading platform in order to benefit from the swap rates on oil contracts, the company has decided to filter out all accounts in order to identify those who abused the system. Due to the large amount of trading accounts being affected this causes a slowdown and delay in the accounting department process.”
Back in 2014, another foreign exchange brokerage regulated in Cyprus caused an outrage amongst its Chinese clients after making a similar move and denying withdrawals to a number of clients. IronFX has since become involved in a number of controversies with European clients filing complaints in large numbers with the Cyprus Financial Ombudsman.
ACFX has issued the following explanation to its clients: “Regarding the matter where some clients performed risk-less arbitrage, we decided to screen all of the client accounts to find the target accounts which have caused an impact on the withdrawals of a number of trading accounts.”
“We’re operating as normal and will try our best to process the withdrawal requests of the clients whose account screening process is completed. We’re sorry to inconvenience your trading experience,” the statement concludes.