Belarus to Update FX Regulation on Recording Phone Calls

Belarus, a country that is becoming an increasingly popular destination for foreign exchange (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 traders alike, might be about to update its FX Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term to bring it in line with European Union standards.

In particular, the head of the National Bank's department for non-banking operations, Dmitry Nabzdorov, told reporters on Wednesday that Belarus has drafted a revised version of the decree "On activities on the over-the-counter market", which will obligate FX companies to record phone conversations between employees and their clients.

According to a report from BelTA, an English language news outlet, Dmitry Nabzdorov said: "The draft decree has been prepared and sent to the government bodies. If they give the go-ahead, the document will be submitted for scrutiny to the head of state this year."

"A forex company will provide records of phone conversations and messages with the clients in the event of disputes. If a forex company fails to provide such information, we will consider everything a client says to be true," Nabzdorov continued.

This proposed revision is in line with EU regulations, as the same requirements are in place under MiFID II.

Belarus: an attractive FX destination

As Finance Magnates reported, Belarus is becoming an increasingly attractive FX destination. This is largely due to its close proximity to Russia and its forex-friendly regulations.

Trading providers such as Alpari, B2Broker, RoboForex, and more have chosen the country to set up shop. Recently, the jurisdiction was made even more tempting thanks to new tax laws.

In particular, the President of Belarus signed a document back in January that allows clients to trade FX without being taxed. Specifically, Alexander Lukashenko, the President of the country, signed the Decree No. 503 "On Taxation," which removes the ability to tax people trading forex indefinitely. The decree exempts individuals from paying income tax received from transactions with non-deliverable OTC financial instruments.