What to do if foreign exchange investment is deceived?

partforeign exchangeThe trading platform has run away, attracting close attention from regulatory authorities.



One personForeign exchange transactionsPlatform professionals21According to the reporter of Century Business Herald, the current business models of foreign exchange trading platforms in China are mainly divided into two categories: one is the traditional order calling model, that is, platform traders announce their foreign exchange trading strategies (including position building price, stop loss price, profit forecast, etc.) through Internet channels, and domestic investors conduct highly leveraged documentary investment operations; The second is that some platforms issue so-called high interest guaranteed foreign exchange asset management products to raise funds from domestic investors for "entrusted wealth management", and participate in various foreign exchange transactions through high leverage to earn high returns.


    "Both of these business models have hidden tricks," said a person from the aforementioned trading platform. For example, in the shouting order scam, some platforms use "shouting orders" to create high profit expectations, encourage investors to open accounts for trading, and ultimately convert investors' losses into platform profits through covert operations and betting trading; And once the second type of guaranteed high interest asset management product incurs investment losses, if the platform is unable to repay the principal and interest, it is easy to encounter a runaway event.


Behind this is the illegal foreign exchange trading platform exploiting regulatory arbitrage loopholes. Due to the varying regulatory standards for foreign exchange trading platforms in various countries, there is an international regulatory arbitrage phenomenon. For example, some foreign exchange trading platforms take advantage of the relaxed regulatory environment in countries such as Seychelles and Vanuatu to mix business licenses or directly "falsify" licenses, and carry out so-called "foreign exchange margin trading" in China under the name of "foreign exchange trading platforms". They attract investors through high-yield commitments and engage in covert operations to "devour" investor funds. These operations are suspected of illegal fundraising or fraud.
In response to this, Sun Tianqi, the Chief Accountant of the State Administration of Foreign Exchange, suggested at the Global Financial Technology Summit that regulatory and judicial departments of various countries should carry out joint supervision and law enforcement to jointly crack down on illegal cross-border financial activities such as foreign exchange trading. For example, issuing a reminder letter to licensed foreign exchange trading institutions under the jurisdiction of overseas regulatory authorities, clearly informing them that foreign exchange margin trading is illegal in China, and for institutions with serious circumstances, they can be transferred to the police Measures such as tightening license plates.


Actually borrowing new and repaying old from the fund pool

The above-mentioned foreign exchange trading platform personnel are reporting to21According to a reporter from Century Business Herald, due to fierce competition in order trading, more and more foreign exchange trading platforms in recent years have adopted the concept of intelligent foreign exchange trading, issuing breakeven and high interest rates (with annualized returns exceeding15%-20%）Foreign exchange asset management products, and then earn high returns by investing in the global foreign exchange market through high leverage.

At present, these types of asset management products are mainly divided into two categories: first, the platform directly raises funds from investors for investment operations, and then pays the principal and interest on time according to the expected return rate stipulated in the contract; second, the platform directly conducts investment transactions on the investor's account in the form of entrusted wealth management, and collects corresponding profit sharing and transaction commission returns according to the account's profit status.



"Both types of foreign exchange asset management product models have significant risks and hidden dangers, leading to an increase in incidents of foreign exchange trading platforms running away in recent times." The above-mentioned foreign exchange trading platform personnel analyzed that most foreign exchange trading platforms currently lack professional personnel to operate, and a slight mistake may cause huge net loss. For example, last year, the unexpected sharp rise of the euro against the US dollar caused many foreign exchange trading platforms to suffer investment losses, making it difficult to support high interest rates; The entrusted wealth management model carries hidden moral risks, as many platforms engage in betting transactions with investors, converting their losses into their own profits.
The above-mentioned foreign exchange trading platform personnel stated that many platforms have followed suit P2PThe approach is to continuously borrow new funds and repay old ones using the fund pool. Since the beginning of this year, relevant departments have strictly regulated and restricted the payment channels for foreign exchange transactions. Investors are concerned about trading risks and have submitted a large number of fund redemption applications, causing some foreign exchange trading platforms to experience fund chain disruptions and have to flee.

“BMFNBomeiEWG、FormaxForeign exchange trading platforms such as Fuyi have all run away for this reason The above-mentioned foreign exchange trading platform personnel admit that on the surface, they are facing the risk of a run on the exchange rate; In essence, it is difficult to maintain the Ponzi scheme of borrowing new and returning old.

The first to bear the brunt of curbing international regulatory arbitrage

  It is worth noting that many runaway foreign exchange trading platforms have used accepting overseas supervision as a gimmick to promote and win the trust of investors.

For exampleBMFNBomei has always boasted that it accepts the UKFCA"Many industry insiders have doubts about this regulation." The above-mentioned foreign exchange trading platform personnel told21Century Business Herald reporter.



   

In his view, the so-called overseas regulation of most current runaway foreign exchange trading platforms needs to be put under a big question mark. For example, they repeatedly claim to have acquired Seychelles, Vanuatu, and CyprusCySECSupervision (due to Tiehui andACFXThe runaway incident resulted in a decrease in credibility for foreign exchange trading business licenses, but in fact, these countries have extremely loose regulatory systems and pose significant operational risks. Even if some foreign exchange trading platforms claim to accept the UKFCAWith AustraliaASICIn terms of regulation, but in practical operation, they can still utilize the different scales of regulation in different countries to find loopholes in international regulatory arbitrage. For example, when foreign exchange trading platforms apply for business licenses from multiple countries, their European business strictly follows the regulatory requirements of the European Union or the United Kingdom, while their Chinese business follows the relatively relaxed standards of countries such as the Bahamas, thus leveraging international regulatory arbitrage to seek huge profits from illegal operations.
Sun Tianqi pointed out that this means that as China's financial market becomes increasingly open, there is still a phenomenon of "insufficient regulatory capacity", such as overseas institutions conducting some domestic unopened financial service businesses (such as foreign exchange transactions) across borders, and there is no consensus on who and how to regulate them.

"One of the issues that needs to be addressed is the issue of international regulatory arbitrage." Sun Tianqi said that for example, the United States has strict regulations on foreign exchange margin trading, and even extends its regulatory tentacles overseas. Therefore, foreign exchange trading platforms dare not provide relevant financial services across borders in the United States.

"Financial regulatory authorities in various countries need to strengthen regulatory coordination, promote the formation of the best global regulatory standards, emphasize transaction tracing, penetrate domestic and overseas supervision, strengthen monitoring of cross-border fund flows, promote the sharing of regulatory information and transaction data, and effectively crack down on illegal and irregular cross-border financial activities." Sun Tianqi pointed out.

. Based on this analysis, in most cases, the platform should be an international forex trading platformfuturesA small company that deceives investors in China under its name. Because legitimateForeign exchange futuresPlatform companies cannot remit funds to investors through private accounts each time.



If you meet the following conditions, you can basically recover losses. For specific details, you can consult our Zhongze Rights Protection for free


1The amount of loss funds exceeds1Ten thousand dollars

2Transaction operation history within six months

3Online banking deposit,Or transfer records

4Have a single operation teacher or open.Customer service contact information for household personnel

5The platform is still operating without running away

6Foreign exchange investmentgoldBeautycrude oilHang Seng Index Futures,A50,HK50,Shanghai and Shenzhen300Currency and other products can protect their rights.

For those who are deceived and cause losses in investing in foreign exchange, indices, stocks, spot goods, futures, postage cards, or commodities, we can help you protect your rights and recover funds if the following conditions are met.

1: Loss limit exceeds10More than RMB 10000.

2: Transaction record in3Within months.

3There are platform transaction records and transfer vouchers. (Mobile Alipay transfer is also acceptable)

4The platform has not yet run away and is in operation, of course, normal deposit and withdrawal is a prerequisite.

5Have chat records with platform "teachers" (salespersons, scammers).

If the above conditions are met, you can contact me, Zhongze, to protect your rights