LeapRate has discovered that Chinese governments have been approaching a number of overseas based Retail FX brokers with offices and operations in the nation, demanding that they immediately shut down any bodily presence in China.
The #8220;roundup#8221; of overseas FX brokers started about two weeks ago during the week leading up to the Chinese New Year (that was Friday February 16). The timing appears to have coincided with the two week period that many Chinese take as vaion time, right after the New Year holiday.
The agents and management of several FX brokers on the ground in China were summarily called, one by one, to a meeting with regulators. At every meeting, they were faced with something of a show-of-force, with agents of six Chinese government and regulatory agencies existing, including the police.
We detail below in an interview with a few of those men and women who had been in one of these meetings precisely what transpired, but in brief each broker was advised it is currently prohibited to operate as a FX broker in China offering leveraged trading of any type, and that they had to present a plan about how they were moving to each physically exit China within two weeks (i.e., by the time people return to work from the Chinese New Year holiday).
We also realize that Chinese governments are cracking down on these people and entities that were linking up overseas FX brokers with Chinese IBs and money managers, whether those brokers have bodily presence on the ground in China or not.
While no official pronouncements have yet to be made by Chinese governments, and we believe that not all overseas FX brokers in the nation have yet to be called in for a #8220;conversation #8221; together with authorities, we believe that these episodes indie the first measure of China banning leveraged trading. Https://www.leaprate.com/cryptocurrency/bitcoinchina/ that has become very popular (possibly too popular) in the nation, and it appears that hot on the heels of the decision they've decided to also ban leveraged FX and CFDs.
Here below is our dialogue with BMFN CEO Luis Sanchez, as noted above one of those Retail FX supervisors who had been summoned to and attended a few of those meetings with regulators. BMFN is a ASIC and Vanuatu licensed Retail FX broker, that had built up a large presence in China over the last 3 decades, with five offices in four Chinese cities. In under a month, BMFN has now shut down its entire operation in China.
https://www.leaprate.com/forex/regul...f-the-country/