Filipino Politician Calls for FX Regulations

A local governor in the Philippines has called on the government to start regulating the retail foreign exchange industry.

Geraldine Zamora, head of the city permits and licensing division in General Santos City, said on Tuesday that firms are operating in the country already and laws should be introduced to govern their behavior.

Speaking to a local radio station, Zamora noted that the municipal government in General Santos has permitted ten FX brokers to run Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term platforms in the past year.

"Since they already exist, it's about time that the government should come up with regulatory policies," the city governor said.

Like China, the Philippines has taken a paradoxical approach to FX brokers.

On the one hand, no laws are governing the industry, and companies are operating in the country without many problems. At the same time, the country’s financial regulator said last year that it is illegal to operate an FX brokerage.

Please regulate us!

According to Zamora, some of the firms that are already operating in Santos City have contacted her and asked her to push for regulation.

One of them, Metro GenSan Credit Cooperative, even proposed a set of rules that would include an FX broker registry and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term requirements.

Zamora told the radio station that the local government is “seriously considering” implementing those rules on a local level.

In the meantime, General Santos will not be issuing any more permits to FX brokers until proper regulations are established. Companies that already have a license from the city authorities will be able to continue doing business as usual.