Operating in the foreign exchange market as a brokerage may be a generally lucrative line of business, but the brokers in questions need to get the host of necessary regulatory clearances before they can set up shop. If a foreign exchange brokerage is not licensed by the relevant authorities, then there is every chance of retail investors being taken for a ride. Since those brokerages are not being monitored; the chances of scams and other unscrupulous activities are heightened as well. One foreign exchange brokerage which operated without a license in the United States was JAFX, and soon enough it came to the attention of the United States Commodity Futures Trading Commission.
Although it is true that many of these operations tend to be long drawn out affairs, the CFTC has stated that it expects the issues with JAFX to be resolved soon. ON July 29, the CFTC filed a report at the Utah District Court, and it has been revealed that the legal representatives of the regulatory body and that of JAFX engaged in fruitful discussions. It is being hoped that it would not be long before the entire affair is resolved. As a matter of fact, JAFX and CFTC have in fact entered into a Consent Order of Permanent Injunction, and Other Equitable and Statutory Relief and that can only point to the fact that the issue could be resolved in the near future.
Back in July 2018, the CFTC found out that JAFX had claimed that its operations were based in Bulgaria, Grenadines, and St. Vincent. More importantly, starting from back in 2015, the company had offered customers in the United States to engage in leveraged foreign exchange trade transactions. The company had no license and had no business accepting customers from the United States. However, the website did mention that it was not directed at customers who are in the United States. That being said, JAFX continued to accept customers who were located in the United States. It remains to be seen how quickly the issues get solved.