R5FX’s CEO Jon Vollemaere recently spoke to FX Week Asia about the issue of illegal FX trading in China. The article follows fresh fines handed out in China this year.

Jon noted:

“The enforcement shows the regulators are serious in their promise to put a stop to illegal currency trading,”

“As Chinese regulators grow increasingly active in their pursuit of FX violations and as heavier penalties are enforced, the market for illegal trading will become more risky and expensive.”

“The implications of these cases are likely to be increased demand for legal pathways to trade FX”

“China has been able to manage the outflows to avoid capital flight, mostly due to tight regulations and controls on capital markets. The key will be the regulator’s ability to slow down unauthorised activity.”

On the evolution of the Shanghai-Hong Kong and Shanghai-London Stock Connect Programmes:

“They are also able to slow or stop this evolution if the renminbi, and China’s economy, is deemed to be at risk,” says Vollemaere. “These carefully planned developments are put at risk by illegal FX activities – and because of that the regulator will continue its crackdown.”

Read the full story here: