If you use a credit card to deposit/withdraw from your offshore broker, you need to read this article from Finance Magnates
As we have known for many months, the nanny state is targeting payment processors as a way of isolating offshore brokers from their U.S. clients.
Apparently, the nanny state now “owns” MasterCard. Visa will likely fall into line shortly.
After reading this Finance Magnates article, you will have more questions than answers. Finance Magnates can’t possibly detail the status of every offshore broker, or every offshore jurisdiction. To find out how this new MasterCard policy might affect your broker, and your account, you will need to talk to your broker directly.
This new MasterCard policy will take effect in 6 months, so offshore brokers have some time to prepare, and to adjust as needed. Consequently, it’s quite probable that your broker has not yet determined their own response to this latest assault by the nanny state. And, therefore, your broker may not be able to answer all your questions at this time.
But, you need to be aware of what’s coming, and you need to be prepared to do your own due diligence regarding threats to the money-transfer pipeline between you and your broker.
Additional information from Finance Magnates
[U]Excerpts from the article[/U] –
"Earlier this week we broke the news that Mastercard is taking action to classify certain transactions as high risk and therefore provide ample time for chargebacks on the part of depositors. Today we can confirm what we suspected a couple of days ago: the effort from the card issuer is part of a well-coordinated campaign that includes several regulators and government agencies.
"Thus, the likelihood that VISA will follow up with a warning of its own against CFD, forex, crypto, binary options brokers and ICOs is a virtual certainty.
“In a letter from a partner bank to a payment processor that is clarifying the stance of the institution on Mastercard’s statement, the new and restricted rules for the so-called “high-risk merchants” are elaborated upon.”
I added the bold type above, for emphasis.
After reading the entire _Finance Magnate_s article, you will probably be left scratching your head, asking “How is this going to affect my broker, and my account?” As suggested in the original post (above), this latest attack on the money-transfer pipeline between clients and brokers will not be fully implemented for almost six months, and it’s likely that nobody – including your broker – yet knows the answers to your questions.
Don’t waste your time trying to interpret the legalese being reported in articles such as the one quoted here. Instead, if you transact with your broker via credit card deposits and withdrawals, leave it to your broker to determine how to adjust to this new credit card paradigm.
Look for an announcement from your broker within the next few weeks, outlining their credit card policies going forward. If no announcement is forthcoming, contact your broker directly, and stay in touch with them, until your particular position is clarified.