The Belize IFSC Introduces New Capital Requirements

Forex brokers licensed by the Belize IFSC must now maintain $500,000 in paid up capital in order to retain their regulatory status in Belize.

Due to an increase in the popularity of forex broker licenses in Belize, capital requirements have recently been raised. Specifically, the Belize International Financial Services Commission (IFSC) has officially announced an increase in capital requirements from $250,000 to $500,000. To allow existing brokers time to adjust to the change, the decision is set to take effect in the beginning of 2019.

Increased Capital Requirements – A Common Trend in Offshore Jurisdictions

The decision by the Belize IFSC has been part of a common pattern we are seeing around the globe. In a similar example, the Vanuatu VFSC recently announced that their capital requirements would increase from $2,000 up to $50,000. Due to these constant changes in global regulation, it’s important to keep up with the latest regulatory trends, making Atomiq Consulting an ideal partner to assist your broker in obtaining an FX broker license.

Why Do Regulators Sometimes Increase Capital Requirements?

There are several reasons a regulator may decide to increase paid up capital requirements. First, when a region grows in popularity, local banks can earn more revenue when capital increases, which is a positive development for the jurisdiction. Secondly, higher capital requirements serve as a barrier to entry for new applications, which helps to preserve the reputation of the regulatory body. Finally, regulators often raise capital in order to appear more competitive when compared to other jurisdictions. For example, €730,000 in paid up capital is required in Cyprus for all market maker licenses, which is in on par with the recent change in Belize.

Continental and Offshore Alternatives to Belize

FX brokers that were previously interested in Belize may wish to consider alternative offshore or continental options. Existing forex brokers currently licensed in Belize are encouraged to explore alternative jurisdictions as well, especially those that have slightly lower capital requirements. Although the proposed capital increase in Belize still doesn’t hold a candle to the requirements in the United States, maintaining $500,000 in Belize may not be ideal for all brokers. For this reason, we encourage you to explore our complete list of forex broker license options, or to contact us in order to determine the best alternative license for your brokerage.

Obtain a Forex Broker License with Atomiq Consulting

Atomiq Consulting specializes in company formations, bank account establishment and license services for FX brokers. If you are interested in exploring offshore licenses, we can gladly assist you in Belize or any of the other offshore or continental jurisdiction found around the globe.

To learn more about our license services, obtain a free price or ask any questions that come to mind, don’t hesitate to contact us today!

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