Now the Council of Ministers of the country has joined the game, offering a set of new restrictive measures with respect to trade with the use of borrowed funds.
The authorities of Turkey continue to tighten the nuts in the national forex market. Following the already announced cardinal tightening of regulatory requirements, the next step was the legislative initiative of the Council of Ministers of Turkey, which proposed a set of new measures for traders using leverage in trade.
Under the new initiative, Turkish citizens will be prohibited from having trading accounts with a forex broker who is not licensed by the Turkish Capital Markets Council (CMB).
This bill is still at the stage of discussion, but if it is adopted, Turkish citizens will no longer be able to open accounts with foreign brokers, and for violation of this ban they will face a fine.
Experts of forex market
As experts in the field of Turkish law commented to Finance Magnates, the constitutionality of this measure raises serious doubts from the point of view of national legislation, as at the moment there are no laws restricting the ability of Turkish citizens to open accounts with foreign brokerage companies. However, as practice shows, in recent years this has not stopped the country’s authorities from many other steps.
As a basis for the proposed regulatory restrictions, the authorities took the law, originally developed to combat speculation in the national currency back in 1989, during the times of the dictatorial rule of Kenan Evren, who came to power as a result of the military coup. The new bill applies to transactions with currencies in the spot market and all derivatives in forex market.
Recall that this year Turkey announced cardinal changes in the regulation of forex brokers, including sharply limiting the maximum amount of leverage at the level of 1:10. As a result, over the past weeks, two major representatives of the industry – – XTB and Saxo Bank – have officially announced their withdrawal from the Turkish currency market or suspension of operations there.
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