Julian Yang, one of the senior executives at TigerWit, has left the company to start a new brokerage - GQ Capital. The offshore-based brokerage is regulated by the International Financial Service Commission in Belize. The new company is yet to announce the full details of the offering.
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From the looks of it, the company is starting with a focus on Forex via a standard MT4 offering.
The raft of new regulations that are set to come into force later this year in the EU could force a lot of brokerages to go offshore. The European Securities Markets Authority (ESMA) is yet to publish the final version of the new regulatory framework which has been under discussion since about over a year.
As EU-regulated brokerages face tougher regulations, some companies are seeking offshore opportunities. The perks of European regulation for companies that are targeting a global audience is giving way to a set of challenges that are arising with the relatively tough Leverage restrictions that are being discussed in the EU.
On their part, offshore brokers are facing big difficulties in securing a bank account and some are typically operating via intermediaries that serve as custodians to the funds that brokers receive as deposits.
Finance Magnates has reached out to Yang for a comment on the new venture, but at the time of publication has not received an official response.
