Growth Capital LLC, a subsidiary of Saint Vincent and the Grenadines-based broker Invest100, has secured a regulatory license to operate in Belarus, Forex Magnates Russia reported today.
This permit states Growth Capital to be the 19th brokerage firm that has been included in the register of forex companies in accordance with the country’s local legislation.
Invest100 is the latest FX broker to eye a lucrative market in Belarus as the trends in retail trading are changing in the eastern European region. The FX industry’s interest in Belarus is justified by the Russian crackdown against forex brokers, which dates back to early 2018.
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Minsk has become an important avenue for forex brokers as the Bank of Russia decided to strip several brokerage firms of their license to trade in forex. Most of the foreign exchange dealers operating in the country saw their licenses revoked last year.
FX industry’s interest in Belarus grows
Having acquired a license from the National Bank of the Republic of Belarus (NBRB), the next step for Invest100 is to undergo an assessment of their trading platform in the National Forex Center. Concerning the financial terms, forex companies must have a capital of at least BYR 2 billion (about US$100,000), and to deposit a guarantee payment to the Compensation Fund to the amount of $50,000.
Thirdly, the licensed forex broker is obliged to become a member of the local Association of Financial Market Development – ARFIN. Other specific requirements for these companies include the obligation to incorporate a local entity to obtain a license from the central bank.
In 2016, a new regulation on forex operations in Belarus came into force. Before this date, the activities of forex companies in the country were not regulated, and the absence of explicit definition created a risk that forex brokers’ operations could be classified as illegitimate activities.