Changes in the Russia legislative framework are prompting Olymp Trade to seize accepting new clients from the country. The pending adoption of amendments to the Russian Securities Markets Law will also affect existing clients of the brokerage with IP addresses leading to Russia.
The company which is offering all or nothing options to the market appears to be worried about the consequences of some new pending restrictions to financial service providers in Russia. The amendments are being introduced after both Yandex, and the broker were cleared from charges related to illegal advertising.
Olymp Trade is instead choosing to refocus its efforts on targeting clients globally. More specifically the company will be expanding further in Asia, Africa, and Latin America.
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Starting on December 26, 2018, the company terminates all advertising campaigns targeted at Russia and users with Russian IP addresses. The broker elaborated in its official statement on the matter that it intends to comply with local laws of every country where Olymp Trade is operating in.
New Russian Legislation
The date when the new securities law is going to get implemented has not been confirmed by the Russian government. After years of delays, the country regulated the forex industry in 2016. Since the regulatory framework has been introduced, however, the majority of Russian clients chose to move their funds with offshore brokers.
The lack of CFDs on indices, commodities, and stocks played a role in discouraging the attractiveness of regulated products. That said, companies are still applying for an official permit.
The 9th Russian firm to be granted authorization was Alfa Forex. The firm filed for a license in May 2018. The permit granted the company to operate legally in the country at a time when offshore brokers have taken a large share of the market.