China Union Pay suspends credit card processing for forex brokers for at least a month

This was sent to several forex brokers and is a huge blow to them as it was one of the

This was sent to several forex brokers and is a huge blow to them as it was one of the only few available safe methods of accepting money from Chinese clients:

I regret to inform you that we received a formal notification from China Pay this morning regarding the suspension of processing for all the Forex business at the China Pay side commencing 1st Nov for about a month’s time. Since we all aware that Forex is a grey-area business in China, thus is high risk and China Pay is going to have an investigation and hence the temporarily suspension. As a cooperative IPSP with China Pay, we will follow the instruction and resume the business once they have finished the investigation.

Please noted that the funds that have been processed until 31st Oct 2011 will be settled as schedule. The suspension is deployed on all the Forex merchant or the IPSP that process Forex transactions with no legal implication from the Chinese Government side but a simply internal investigation that is conducted by China Pay.

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We will keep you posted regarding the progress.

Thank you very much for your kind understanding and please accept our sincere apologies for any inconvenience caused. 

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