The Cyprus Securities and Exchange Commission (CySEC) has warned regulated brokers about offering their services in Russia. According to the existing EU regulatory framework, companies are only allowed to offer their services in jurisdictions in which they are allowed to operate.
In a statement, the Cypriot regulator highlighted that brokers regulated on the island do not have the necessary permission to offer their services in Russia unless they are also regulated by the Bank of Russia.
The Chairman of the CySEC, Demetra Kalogerou, states that regulated firms have to consult with local legal representatives in Russia in order to ascertain how can they provide their services legally in the country.
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Russian Authorities Crack Down on Forex
The local self-regulatory watchdog of the industry, the Association of Forex Dealers (AFD) has been actively informing authorities about ad campaigns from foreign brokers. Despite that, after the introduction of the official regulatory framework for forex providers in Russia, many companies located outside of the country have continued to target residents.
Recently local search engine giant Yandex got charged because it facilitated the advertisement of foreign forex brokers which are not regulated by the Bank of Russia. At the beginning of May, a third case was filed against the company after it lost the first trial and is still awaiting the final decision of the court on the second one.
The self-regulatory forex brokers organization in Russia includes all of the brokerages that are regulated and are allowed to onboard Russian clients.
Google Ads Ban
Google is another channel which will become more difficult to use in Russian after the introduction of the new regulatory framework. The company is going to require that all of its broker clients provide it with proof that they are legally allowed to offer a given trading product in Russia. That said, brokers are already working on multiple ways that allow them to offer their services in the country.