XTB, 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.