China Union Pay suspends credit card processing for forex brokers for at least a month

This was sent to several Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term brokers and is a huge blow to them as it was one of the only few available safe methods of accepting money from Chinese clients:

I regret to inform you that we received a formal notification from China Pay this morning regarding the suspension of processing for all the Forex business at the China Pay side commencing 1st Nov for about a month’s time. Since we all aware that Forex is a grey-area business in China, thus is high risk and China Pay is going to have an investigation and hence the temporarily suspension. As a cooperative IPSP with China Pay, we will follow the instruction and resume the business once they have finished the investigation.

Please noted that the funds that have been processed until 31st Oct 2011 will be settled as schedule. The suspension is deployed on all the Forex merchant or the IPSP that process Forex transactions with no legal implication from the Chinese Government side but a simply internal investigation that is conducted by China Pay.

We will keep you posted regarding the progress.

Thank you very much for your kind understanding and please accept our sincere apologies for any inconvenience caused.

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