The concept of illegal exchange has been accompanied by the development of the domestic foreign exchange industry, from the United States NFA (non-FDM class), New Zealand FSP and now Canada's MSB, platform bosses are always looking for a cheap and looks like regulatory "regulation", as the platform's "regulatory solution", then what is MSB? How many forex brokers are regulated in Canada? Serei Headlines continues to fulfill its duty to uncover the largest regulatory license scam for forex in 2019-2020.
What is MSB?
The MSB license in Canada is issued by FINTRAC (Financial transaction and Reports Analysis center), which is mainly applicable to companies operating three types of business.
1. Foreign Currency exchange (non-securities financial services)
2. Money transfer service
3. Cheque clearing and traveller's cheque service
It is worth noting that from June 1 this year, the regulation of virtual digital coins will also be included in the regulatory scope of MSB business, but many specific details are to be determined.
What is FINTRAC?
FINTRAC (Financial transaction and Reports Analysis center), the Financial Transaction Reports Analysis Bureau, is the main anti-money laundering department in Canada, so the regulation of MSBS is mainly for anti-money laundering purposes. FINTRAC's requirements for MSBS are mainly in four aspects.
1. Verify the identity of the transaction subject
2. Enter FINTRAC reports for each transaction
3. Record and archive transaction records
4. Regulatory records and reports of cash transactions
Canadian Securities Financial regulatory System and foreign exchange margin trading
Canada regulates the securities industry through the Investment industry regulatory organization of Canada (IIROC). Since foreign exchange trading belongs to the category of CFD foreign exchange margin trading, it belongs to futures, and other brokerage categories include stock securities and options, and so on. Here, it should be noted that FOREX margin trading and foreign currency exchange are two completely different businesses in two industries, so the so-called MSB regulating FOREX CFD forex margin trading is a completely wrong concept.
Account opening problems for clients outside Canada and domestic brokerages in Canada
Local brokerages in Canada give CIPF protection to local customers' accounts, that is, for each account if the broker goes bankrupt, the Canadian insured fund will pay a maximum of $1 million. But this is for local accounts only. For Chinese customers, it is possible to open a foreign exchange margin trading account in Canada with a passport, but there is no CIPF protection. Meanwhile, deposit is also a big problem at present, unless it is a credit card deposit or a local bank savings account in Canada.
It can be seen that the only forex margin regulator in Canada is IIROC, and the threshold for regulatory registration is extremely high. So far, there are only 13 forex brokers regulated by IIROC, including Gain, Interactive Brokers, and OANDA, which are T1 level companies in the industry.
Simply put, MSB is a seemingly lofty regulatory license, but it is meaningless for Chinese customers who do foreign exchange margin, and the current domestic mainstream foreign exchange media are also in the dark, and MSB is included in the formal foreign exchange supervision.
Sayre headlines in this solemn announcement, after the Canadian regulation only recognized IIROC, regulatory information only MSB license of foreign exchange brokers are regarded as "black platform", investors should stay away from such brokers, investors who have opened accounts should apply for cash as soon as possible!
