Chinese government blocks many major retail Forex Brokers websites
A big slap in the face comes from Chinese government today, as it blocks many FX sites for good. China has always been a big fan of censorship and internet control and Forex trading didn’t skip its watchful eye of regulations.
In order to be visible to Chinese public, a commercial website must have special government license called “Beian”, which covers domains with .cn at the end. The owner of the website must be Chinese citizen and the hosting of the site must be also inside the country. This way the government has full control of the online data presented to its public.
While some of not-Chinese-based Forex Brokers had privilege to be available to Chinese traders, today everything changed when China decided to block all of those brokers and make them completely unreachable within China territory.
Which Forex Brokers are no longer available to Chinese clients?
Among permanently blocked brokers you can see the big trading giants FXCM, XM, FxPro, Gain Capital and Aetos. To be available to Chinese public, forex brokers must be hosted and licensed inside the country itself.
Bad news aside, the above-mentioned brokers are of course accessible from any other country, which doesn’t believe in total internet dictatorship and monitoring of interests and freedom of choice of each citizen.
Website block and censorship of every file transfer has been going on for a while now. China government is working hard to keep the western world out of its boundaries and maintain the so-called stable society with ease. That might be excitingly thrilling for the government itself. A bit less so for the common people and, of course, many companies that unwillingly don’t have any exposure for Chinese audience.
This means that there will be a greater dependence on introducing brokers (IBs), which are commonly accepted as the only means by which western firms interact with a Chinese audience, because very few Chinese investors even trade their own accounts, let alone go directly to the Chinese language site of a foreign broker and invest directly.
The possible future for Chinese-oriented forex brokers would be joint venture with local companies with physical address, payment options and hosting inside the mainland. The only way to be shown to Chinese public would be to work the campaigns from the inside the country, hosting websites in China and allow Chinese local partners to partially own the subsidiaries of the off-shore brokers.
China is still one of the enchanted and unreachable land filled with so many opportunities for both outside world and the locals. We will look closely in the further development in the area. Stay tuned.