B2Prime, part of broker technology provider B2Broker, has become the first forex prime broker to obtain its license to operate in Belarus in accordance with the country’s local legislation. The news was first reported by Forex Magnates Russia.
Prime Brokerage Services Limited, or B2Prime, offers a range of prime brokerage services with over 800 trading instruments, including forex, shares, indices, metals, and commodities. Its parent entity also aggregates and distributes liquidity via several distribution systems, including OneZero Hub, PrimeXM X-core, B2BX Marksman, FIX API, Tools for Brokers Bridge, and AMTS ECN Bridge.
In order to launch operations in Belarus, B2Prime acquired a license from the National Bank of the Republic of Belarus (NBRB), which allows them to be included in the register of forex companies. The second step is to undergo an assessment of their trading platform in the National Forex Center, an institution established by the Council of Ministers together with the central bank. 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.
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FX industry’s interest in Belarus grows
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.
The FX industry’s interest in Belarus is justified by the Russian crackdown against forex brokers, which dates back to early 2018. The Bank of Russia eliminated competition from the entire forex market in the country after it 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. The list includes Alpari Forex, Forex Club, Fix Trade, Trustforex, and Teletrade Group.
B2Broker has been highly active over the past few months in terms of its overall business and developments. This included the launch of its B2BX project, which was billed as one of the first aggregators of cryptocurrency liquidity.
Initially founded as a company to provide FX technology solutions, B2Broker has carved a niche in the crypto market as a liquidity provider. This move was borne out to enable smaller brokers, which may not have the leverage to access liquidity from the top tier providers, to be able to source such liquidity from B2Broker.