In response to heightened risks associated with international investments in recent years, MTBankFX, a Belarusian retail broker, has announced the cessation of its international investment operations, effective June 1, 2024.

Response to Rising Uncertainty in International Investments

The decision comes amidst a series of challenges faced by Belarusian investors, including the freezing of foreign securities, significant hurdles in international currency transfers, and the compelling need to swiftly divest their assets. MTBankFX stated that they are undertaking all possible measures to mitigate risks. However, they acknowledged the persistent trends of uncertainty and potential limitations when engaging with numerous third-party entities.

According to the official statement released by MTBankFX, clients are advised to close their existing positions at fair market value by May 30, 2024. Furthermore, the bank will suspend the opening of new positions from April 15, 2024, onwards. For clients seeking to continue their operations with over-the-counter financial instruments, MTBankFX is actively exploring options for transition to alternative Belarusian financial firms.

Belarus's Financial Landscape: Fluctuations in OTC Forex Trading

In the Republic of Belarus, the financial landscape has witnessed significant shifts, particularly in the realm of over-the-counter (OTC) forex trading, as reported by Finance Magnates. Recently, Fortrade, a retail broker, saw its authorization in Belarus revoked after five and a half years, as reported by the country's regulatory registry. Belarus, once touted as a burgeoning financial hub in Eastern Europe, has struggled to fulfill its promises, leading to a rapid decline in its markets.

Белорусский банковский форекс-дилер #MTBankFX закрываетсяhttps://t.co/bZMD9k8YcJ pic.twitter.com/PbZaaLtKB5

— Finance Magnates RU (@ForexMagnatesRu) February 29, 2024

Last year, the Belarusian OTC Forex market experienced the departure of seven participants amid ongoing challenges. The ongoing Russia-Ukraine conflict has further complicated matters, with western sanctions on Belarus prompting several international players, including Robo Forex and Saxo Bank, to terminate their services in the country.

Moreover, 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, including OpenFX, although it has ceased operations, is still registered in the country.

Since the establishment of the legal framework governing OTC forex, Belarus has authorized 32 companies, yet 23 have exited the market for various reasons over the years. These developments reflect the evolving geopolitical landscape and regulatory changes reshaping Belarus' financial sector, prompting both local and international players to adapt to new realities or exit the market altogether.