My Forex Funds and Deel Scandal as a Game-Changing Market Trend: Compliance First

<p dir="ltr">Many prophecies have predicted the outcry of My Forex Funds, but not a single one viewed the response of Deel. Occasionally comes a scandal that not only sets the regulatory scene ablaze but also the market scene as a whole.</p><p dir="ltr">Evolution of Compliance</p><p dir="ltr">Since the Estonian crypto scandal in August 2020 and the Celsius scam, the fintech sphere, as a whole, has been viewed with much scrutiny, especially in cases of forex, and rightfully so.</p><p dir="ltr">Yet now, it seems not only the companies conducting the specific fraud are under the public eye but also the companies delivering services to the same entities. This scrutiny serves as a game-changer in the field and in the <a href="https://www.financemagnates.com/forex/my-forex-funds-scam-might-trigger-regulation-push-on-prop-trading/">regulatory spheres of compliance</a>.</p><p dir="ltr">Thus, regulators worldwide view this issue with contempt, mainly because of the public outcry they face with the direct dilemma of investigating. However, this was not the case several years ago. Regulators now have direct accountability towards their respective geographical areas and the population and type of consumers they aim to protect.</p><p dir="ltr">The same consumers that have suffered tremendously during the Milton scandal, the ICOs of 2017, and the Pandora Papers are now receiving some gratification from the least expected party. Yet, this is only part of the broader picture.</p><p dir="ltr">Companies Are Getting Cautious</p><p dir="ltr">Companies regulated under the same regulator and currently providing services for the targeted entity are now considering ceasing activities to retain their own licenses. This is the exact case with the recent scandal involving <a href="https://www.financemagnates.com/forex/prop-trading-and-my-forex-funds-a-regulatory-crossroads-in-the-wake-of-the-deel-scandal/">Deel and My Forex Funds</a>. It has changed the regulatory framework as we are currently viewing it. </p><p dir="ltr">The mere change of companies refusing to conduct, produce, and render services to targeted companies proves that the process of retaining a company as a client, even with the typical excuse of working with a technology supplier, does not withhold any backup.</p><p dir="ltr">Regulators and market players have finally come across the watershed. They deem companies that are non-compliant or under inspection for fraud as companies that should be avoided, even on the technology level. It is a stark difference from the money laundering schemes of ICOs, in which certain companies have continued to operate with other companies based on just providing technology.</p><p dir="ltr">The issue of licensing has become increasingly demanding. It is also in demand for banks that don't see any added value in working with unregulated firms. When deciding to stop supplying and rendering services to My Forex Funds, <a href="https://www.financemagnates.com/forex/my-forex-funds-fallout-hr-startup-stops-payouts-to-prop-trading-firms/">Deel essentially caused a stir</a>, but to what effect?</p><blockquote><p lang="en" dir="ltr">An official announcement in regards to Contracts, Payouts &amp; KYC has been made in our discord today.