It is not a rare occurrence for Japanese financial regulators to act against companies that are authorized in overseas jurisdictions, however lack the necessary regulation in Japan and target Japanese investors.
X Global Markets Ltd, a Forex broker authorized as a Cyprus Investment Firm (CIF), has made it to the Warning List of Japan’s Financial Services Agency (FSA), as the company is targeting Japanese investors without the necessary regulatory permission.
In its warning, the Japanese regulator notes that even companies that are regulated overseas should obtain authorization in Japan to target local investors. The concept of “targeting Japanese investors” under the Japanese laws includes offering investment services online via a website in Japanese.
Since X Global Markets has such a website offering FX services in Japanese language, while lacking the proper registration in Japan, it made it to the Warning List.
The Japanese-language version of X Global Markets’ website.
To view the full Warning list at the Japanese FSA website, click here.
To view the particular warning, click here.