MTBankFX Halts International Operations Amid Challenges

The suspension of international investment operations by MTBankFX, effective June 1, 2024, is a response to challenges in the financial landscape. This announcement follows the revocation of retail broker Fortrade’s authorization in Belarus, signaling a turbulent period for financial entities in the region.

Challenges faced by Belarusian investors, including the freezing of foreign securities and obstacles in international currency transfers, drive MTBankFX’s decision to divest swiftly. In an official statement, MTBankFX expressed its commitment to mitigating risks while acknowledging the persistent uncertainty trends and potential limitations in engaging with various third-party entities.

MTBankFX advises clients to close existing positions at fair market value by May 30, 2024. Additionally, the bank will suspend the opening of new positions from April 15, 2024. For clients seeking alternative options for over-the-counter financial instruments, MTBankFX is actively exploring collaborations with other Belarusian financial firms.

MTBankFX Halts International Operations Amid Challenges

The financial landscape in the Republic of Belarus has undergone significant shifts, particularly in the over-the-counter forex trading sector, as reported by Finance Magnates and according to the country’s regulatory registry, Fortrade, a retail broker, recently had its authorization in Belarus revoked after five and a half years. Belarus, once considered a burgeoning financial hub in Eastern Europe, has faced challenges in fulfilling its promises, resulting in a rapid market decline.

Last year, the Belarusian OTC Forex market witnessed the departure of seven participants amid ongoing challenges. The Russia-Ukraine conflict has further complicated matters, with Western sanctions on Belarus leading international players like Robo Forex and Saxo Bank to terminate their services in the country. Additionally, EXMO.com, a digital asset trading provider, exited both Russia and Belarus, selling its local businesses.

Despite these setbacks, Belarus currently hosts nine licensed OTC forex participants. Notably, OpenFX, although ceasing operations, still needs to be registered in the country. The regulatory environment governing OTC forex in Belarus has witnessed 32 authorized companies since its establishment. However, 23 have exited the market for various reasons over the years, reflecting the evolving geopolitical landscape and regulatory changes shaping Belarus’ financial sector. Adapting to these new realities or exiting the market altogether compels local and international players.

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