The National Bank of Belarus granted a new regulatory license to Capital.com. The company, which is operating globally via its Cyprus license, acquired the new permit at a time when the market in the country is continuously growing with new players.
The event marks Capital.com as the 14th company to be granted a permit to operate in the country. In contrast to the sharp consolidation in the Russian market resulting from the regulatory framework in the country, the approach of the National Bank of Belarus is much more reminiscent of a competitive marketplace.
The company launched a new website capital.com.by localized for the regulatory jurisdiction. A message to clients states that the company is soon going to be open for business.
Expanding in Challenging Times
The Belarus expansion of Capital.com comes during a difficult time for the forex and CFDs brokerage industry. Aside from the new ESMA regulatory requirements which have caused a sharp decline in trading volumes for brokers across the board, the forex market has been lately much less volatile than usual.
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While firms have been aggressively expanding into new markets over previous years, the current consolidation phase is making any such efforts very rare. New regulatory jurisdictions across the globe have been the most logical destination for expansion.
Earlier today, Finance Magnates reported about Equiti.com’s new brand called FXPesa for the Kenyan market. Brokers are looking for new regulated jurisdictions as the requirements on the part of major corporates such as VISA, Mastercard and Google have made it difficult for firms looking to advertise in regulated jurisdictions.
Capital.com has been actively involved in educating its clients about the risks associated with trading. The company is known for developing an in-house tool aiming to analyze trading behavior patterns and assist its customers in making better trading decisions with the help of machine learning.
As the firm sets foot in Belarus, it will have to deposit about $55,000 into the local guarantee fund of the National Forex Center (NFC). Once the transactions are complete, the company will have the right to operate in the country and attract new clients.