Blackbull Denies MetaQuotes License Loss After Funding Pips

MetaQuotes, the provider of MT4 and MT5, has increased US broker and proprietary trading controls. This move has led to significant disruptions, notably the abrupt suspension of trading activities by Funding Pips and rumors concerning Blackbulls status with MetaQuotes.

Funding Pips, a proprietary trading firm, was the first to experience the impact of MetaQuotes' stricter policy enforcement. The firm announced an “unexpected urgent maintenance” following a flurry of complaints from traders about closed positions and inaccessible trades on MetaTrader platforms. This announcement confirmed the industry speculation about MetaQuotes stringent actions.

Amidst this turmoil, BlackBull Markets found itself at the center of rumors alleging the loss of its MetaQuotes license. BlackBull quickly addressed these rumors, clarifying that the current difficulties faced by new users of the MT5 mobile app were due to temporary technical issues, assuring a prompt resolution. Nevertheless, Anish Lal, BlackBull‘s chief business development officer, revealed on social media platform X that MetaQuotes’ policies had compelled them to sever ties with Funding Pips.

The situation gained further attention with the termination of True Forex Funds MetaQuotes license over regulatory concerns, specifically its unauthorized dealings with US clients. This action by MetaQuotes underscores its commitment to regulatory compliance and its stance against practices that may contravene US regulations.

The Commodity Futures Trading Commission (CFTC)s decision to red-list True Forex Funds for offering regulated products outside US jurisdiction and facilitating trading in Contracts for Difference (CFDs) – which are illegal in the US – highlights the regulatory challenges facing firms operating or aiming to engage with the American market.

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News 2024-02-07

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MetaQuotes' crackdown on non-compliant enterprises affects the trading sector, notably proprietary trading firms and brokers who use high leverage to entice customers but lack access to liquidity providers to manage their volumes. While problematic in any regulatory climate, this business model is particularly susceptible in the US, where controls are tightening.

Several factors seem to influence MetaQuotes' actions. The operational risks associated with firms that generate a significant number of complaints in the US and the minimal financial benefit MetaQuotes gains from these entities have prompted a reevaluation of their partnerships. Furthermore, the heightened scrutiny from US regulators, including the potential threat to MetaQuotes' presence in app stores unless compliance is ensured, has played a critical role in these decisions.

The trading industry is moving toward regulatory compliance and operational integrity. To maintain operations and access to MT4 and MT5, brokers and proprietary trading groups must carefully handle MetaQuotes' limitations. Online trading is competitive and regulated, so flexibility and compliance are essential.

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