Offshore Forex licenses

[lrotter]

Hello Team!
I was looking for some new interesting locations to get Forex licenses.
In particular I was thinking about Capo Verde, but did not find any local lawyers who could assist.
Do you know what approach shall I take to get into this?
As well, what are the most interesting offshore jurisdictions for Forex/brokerage licensing now?
Thanks!

 

[Sols]

I'm mostly seeing Bahamas, Cayman Islands, and a few poor souls still going for Belize and Vanuatu which are almost entirely useless. These are often used in conjunction with a CySEC license and EU presence to reach payment processors and banks.

 

[Nicholas Van Orton]

Hi @lrotter , I'm quite active in FX and from what I gather SVG (Saint Vincent and the Grenadines) is the most popular destination today for those who want to escape draconian MiFID II idiocy or FCA bureaucracy (in Europe), let alone the dumb-tards in the USA. I hope that helps. PM me if you're open to investors/partners, I might be interested in joining a FX dealer business venture.

 

[Sols]

SVG doesn't issue licenses for this type of business. SVG is popular because it's a legal vacuum.

 

[Nicholas Van Orton]

Hi @Sols ... can you then please explain this to me "Legal information: ************* Limited is an authorized brokerage firm and regulated by the SVGFSA under number ******** IBC ****."

I guess setting up a brokerage firm and acquiring a broker-dealer license is what OP is after?

 

[Sols]

Hi @Sols ... can you then please explain this to me "Legal information: ************* Limited is an authorized brokerage firm and regulated by the SVGFSA under number ******** IBC ****."

I guess setting up a brokerage firm and acquiring a broker-dealer license is what OP is after?

It's quite simple. It's a lie. The SVGFSA does not license brokers. They license banks, funds, insurance companies, credit unions, friendly societies, and MSB (money service business). The term MSB carries different meanings but across the Caribbean, it usually only refers to money remittance. The only MSB licensees in SVG are Western Union and MoneyGram.

Take a look at some of the warning posted by the SVGFSA. They specifically say they do not authorise brokers.

http://svgfsa.com/alert-2-of-2017-tallinex-limited/

However, please be advised that Tallinex has been engaging in forex trading business at its own risk or at the risk of the jurisdiction where it obtained authorization to conduct such business as it is not regulated by the FSA.

 

[Nicholas Van Orton]

OK, I get it. I then know over a dozen 'lies' (they claim being registered when in fact all they've got is a standard IBC), some of which I have to say have quite decent volumes going, and are NOT a fraud (only trying to bypass the European bureaucracy shitholes). From what I've read following your link I take it that -as you said- they use the legal vacuum concerning FX activities to purport themselves as "regulated entities", only to show an IBC certificate at most if you ask them for proof. Thanks for shedding some light into it!

 

[SaintVince]

Good explanation by @Sols.
interesting read, makes you think about shortcuts some companies are taking.

 

[Spinat]

OK, I get it. I then know over a dozen 'lies' (they claim being registered when in fact all they've got is a standard IBC),

Isn't it how they operate in Costa Rica for instant or in some of the other banana Republics?!

Anyway good point.

 

[omarebada]

ٍSo, Which is better for unregulated fx company .. St. Vincent or seychelles?

 

[onemansomewhere]

Hello Team!
I was looking for some new interesting locations to get Forex licenses.
In particular I was thinking about Capo Verde, but did not find any local lawyers who could assist.
Do you know what approach shall I take to get into this?
As well, what are the most interesting offshore jurisdictions for Forex/brokerage licensing now?
Thanks!

The best choises:
Kazakhstan
Georgia
Panama