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VISA and MasterCard further tighten rules for offshore brokers

#1
Offshore brokers that offer VISA and MasterCard payment options to their clients are faced with new restrictions.

For one, currently offshore brokers have to pay a much higher fee for processing card transactions, compared to the one payed by brokers, regulated in the European Union, USA, Canada, Australia or Japan.

What is more important, however, now offshore brokers will have to prove that they are allowed to charge the cards of overseas clients. Recently all brokers registered in Belarus were asked to provide legal proof to the card companies that they are allowed to service customers from outside the country.


Re: VISA and MasterCard further tighten rules for offshore brokers

#3
todor wrote:
Wed Oct 09, 2019 9:22 pm
They never stopped. I see brokers eventually stopped offering bank wires options. Somehow I learned how to use crypto exchange and have been comfortable using transfer/withdrawing crypto since then, big plus is that it's faster than any other methods.
Can you point us on where is the best place to go to learn how to use crypto exchange and what are the safest exchanges to use. Thanks.

Re: VISA and MasterCard further tighten rules for offshore brokers

#4
Most of the offshore jurisdictions have no legal framework for crypto business, while it is quite difficult to establish a fully regulated crypto exchange somewhere in EU member state. So, to my mind, only a few offshore brokers would be able to move to crypto since it is also necessary ta obtain a license to provide such services and crypto related regulations are strict enough nowadays. The times of unregulated crypto exchanges are gone, and now they are treated as other entities providing financial services. By the way, they will be able to partner with financial intermediaries like payment processors that already have money transmitter license. These companies would help them to receive funds from their clients.
Anyway, tightening rules is quite common in the sphere of Forex. Just a year ago ESMA introduced new rules that resulted into decline of number of clients, but only EU-based brokers are subject to ESMA supervision, so offshore brokers still have more flexibility while their client are less protected.


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