FinMin wants to increase KNF supervision over online financial market

The Financial Ministry wants to increase the Financial Supervision Authority (KNF) control over the financial products offered online, such as Forex trading, according to a new draft bill. According to the ministry, the new law would help “prevent fraud on the financial market by unauthorized entities.” The projects grants KNF new powers, including the publishing of the expanded alert list, which currently only lists entities names, now it will also list URLs, and would apply not only to the entities under investigation. If a URL is placed on such lists, then, according to the bill, internet providers would have to block access to it. The project also envisages exacerbating criminal liability for unauthorized trading in financial instruments, “where the consequence of a prohibited offense is the unfavorable regulation of the property by the injured party.” It also foresees an increase of the security deposits from 1 to 4 percent for Forex companies (lowering the maximum leverage to 1:25, in line with recent legislations in other countries).