NFA Looks Into Banning Credit Card Deposits – The Impact
Earlier this month, the NFA sent its members a ‘Request for Comments’ letter are about the prohibiting of credit card payments. The NFA’s Compliance & Risk Committee (CRC) is concerned that these payment solutions promote depositing with borrowed funds and small sized deposits which barely cover minimum margin requirements. In their words “The CRC is concerned that retail customers may be opening accounts with funds that are not risk capital and are using credit cards as a source for borrowing funds to invest. The CRC’s overall concerns with this practice are compounded by the fact that many FDMs that offer this funding mechanism also permit retail customers to open an account with a very low deposit amount (e.g., $100) that merely covers the intended transaction’s initial margin requirement. Any slight movement in a customer’s forex position causes the customer to quickly fall below the margin requirement for the transaction.”
Single Mention of Bitcoin:
Therefore, while credit cards are an essential part of the US FX industry, it is safe to assume that alternate forms of payments won’t take long to fill the gap. On this point, Oanda’s CEO K Duker answered in a Reddit AMA that he expects digital currencies like bitcoin to play a bigger part of payment solutions for firms in the future.
Full Article:
http://forexmagnates.com/nfa-looks-into-banning-credit-card-deposits-the-impact/For all who don't know it NFA stands for National Futures Association.
Today there is also a second article with Bitcoin on Forex Magnates, about the Reddit AMA mentioned above:
Oanda’s CEO K Duker Hosts Reddit AMA
Oanda’s CEO K Duker hosted a Reddit AMA yesterday....
There was a question about bitcoin which Duker answered that “I wouldn’t expect to see (bitcoin) right away, but I definitely think alternative methods, like bitcoin, that focus on digitized exchange will become more prominent in the future.”...
Full Article:
http://forexmagnates.com/oandas-ceo-k-duker-hosts-reddit-ama/