The scandals involving My Forex Funds and Deel have changed the rules of the market.

In the financial industry, many anticipated the turmoil surrounding My Forex Funds, but no one could predict the impact of Deel's response. Occasionally, scandals erupt, not only igniting regulatory landscapes but also sending shockwaves throughout the entire market.

Focused on forex, cloud solutions enable stable and rapid cross-border connections, meeting high-demand scenarios.

Imagine having cloud solutions dedicated to forex, offering robust cross-border connectivity to handle high-demand situations effortlessly. This is precisely what Alibaba Cloud provides as a secure global platform for forex traders.

Since the Estonian cryptocurrency scandal in August 2020 and the infamous Celsius scandal, the fintech industry, especially in the forex sector, has been under strict scrutiny, and rightly so.

However, what makes this period different is that it's not just the companies directly involved in fraudulent activities that are in the spotlight but also the service providers catering to these entities. This shift has brought about transformative moments within the industry and regulatory spheres.

Global regulatory bodies now approach this issue with urgency, mainly because investigations into such cases often come with public outcry. This represents a significant change from the past when regulatory bodies had less responsibility concerning geographical jurisdictions and the types of consumers they aimed to protect.

Entities regulated by the same regulatory authority and currently providing services to the entities in question are now considering ceasing operations to safeguard their licenses. The recent scandals involving Deel and My Forex Funds typify this transformation and redefine the regulatory framework as we know it.

The fact that companies are refusing to do business with affected entities, even when citing the typical excuse of partnering with technology providers, underscores the significance of this transformation.

Regulatory authorities and market participants have finally reached a watershed moment. They are categorizing non-compliant or fraud-investigated companies as entities to be avoided, even at a technological level. This is in sharp contrast to the past ICO-related money laundering schemes, where some companies continued to collaborate with others, merely providing technology.

License issues are becoming increasingly urgent, even for banks that no longer see any added value in partnering with unregulated companies. When Deel took the bold step to cease supplying and servicing My Forex Funds, it raised a crucial question: What are the consequences of such action？

A licensed and regulated company would never want its license revoked due to its clients' fraudulent activities. Furthermore, Deel has taken proactive action, making a decisive move that the market has eagerly awaited since the binary options scandal: refusing to collaborate with non-compliant companies, recognizing that it could affect their own business.

In this scenario, Deel has prudently selected its clients, leaving My Forex Funds at a disadvantage. The critical question now is, who will be the next to embrace this transformation？ Only time will reveal the answer.