XTB Exits Turkish Market as Regulatory Changes Limits Forex Business Activities - The Industry Spread

Karthik Subramanian

Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.

XTB

XTB Exits Turkish Market as Regulatory Changes Limits Forex Business Activities

April 21, 2018

Capital Market Board (CMB) of TurkeyXTB, the Polish forex broker has firmed up its plan to exit the Turkish market after it first indicated about the move to suspend business activities in the country in November 2017 due to the limitation to forex business enforced by Turkish regulator. 

The company in its official statement said that it is withdrawing registration with Capital Market Board (CMB) of Turkey. Earlier this year, the authorities introduced several limitations on forex regulations which affected XTB’s operations. The decision to exit the Turkish market by XTB follows after the regulators gave no indication of intention to revise the limitations. The decision to exit the market was also aided by recent economic and political situation in Turkey which adversely affected the business environment and also triggered uncertainty in this ‎market.‎

The broker will now look to accelerate its expansion plans and setting high international growth in Latin American nations, Africa and Asia. While addressing to shareholders, the company management said that it will use its presence in Belize as starting point to expand its business in Latin American countries.

“Thanks to the ‎presence in Belize, the group can offer Latin American customers a region-specific ‎service and adopts its marketing strategies to local conditions.‎”

Stating about the exit from Turkish market, it said, drastic changes in regulatory structure affected the business which saw a considerable decline in customers and thus reduced the activity of XTB Group in Turkey. It explains that the total financial cost of withdrawing from Turkey cannot be ascertained now due recent jump in Turkish lira volatility so it will be reflected in future statements.

According to information available from the XTB website, there will be significant cost reflection of shut down of its Turkish operations. It will require that the value of shares of its Turkish subsidiary be written off which amounts to $2.55 million and will separately write-off value of other intangible assets which amounts approximately $1.47 million.

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