Is Foreign-based Forex Legal?
Forex is one of the most important and most used investment tools of today, and not only in our country but also in many foreign countries. In addition, the question of whether Forex is legal in foreign countries comes to mind. Forex has become one of the investment instruments preferred by many investors because of its large volume in terms of transactions. Questions remain as to whether Forex is legal at this point. Forex is a legal market in Turkey, but it is free by means of CMB licensed forex companies. The situation is different in foreign forex companies. Because forex companies established abroad do not have CMB licenses. In 2017, the CMB banned people resident in Turkey from trading abroad.
In our country, every regulation and control process related to the investment market is carried out by the CMB. In this context, the question of whether Forex is legal is brought to mind once again, which is primarily in foreign sources. Then a statement was made by the head of the CMB. In the statement, it was stated that there was a blocking of foreign exchange transactions in order to confirm the concerns. As a result, foreign exchange is legal in Turkey as the answer to the question can be said that it is not legal. In 2017, the CMB banned people resident in Turkey from trading in foreign exchange firms that are not subject to CMB supervision.
In our country, it has been seen as a practice, especially in order to prevent the shift of investors to foreign investments and to keep the domestic trading stock on a steady or increasing course. However, there are thousands of investors who open accounts and continue their transactions abroad through foreign exchange companies. For the time being, there was no sanction decision taken against these investors, which was reported to the press. However, it is worth noting that there have been criminal charges filed by the CMB against individuals who have collected funds and used them in derivative markets abroad.
Foreign exchange companies have become popular as a result of the minimum guarantee amount of 50,000 TL introduced to Forex transactions by the CMB and the leverage ratio reduced to 1:10. If you ask if there has ever been an investor who has been punished for trading forex abroad, as far as we know, it has not happened. However, that doesn’t mean that this will not happen.