Capital Markets Authority warns its citizens that trading with unlicensed foreign exchange brokers may lead to loss of investments
The Capital Markets Authority (CMA) of Kenya has advised its citizens against using any kinds of services provided by unlicensed foreign exchange (FOREX) trading platforms.
The Independent Government Financial Regulatory Agency further warned that by the end of March, if any person engages or invests via such platforms, he/she will be at the brink of losing all investments without any protection from the law.
The Financial Regulatory Agency also went on to warn all illegal, unlicensed online trading platforms from luring investors and asked them to cease their operations in the country immediately.
As of now, there are only three fully licensed foreign exchange trading platforms available in the country, i.e. EGM Securities which is owned and controlled by the Equity Group, SCFM Limited and Pepperstone Markets.
EGM Securities is known for being the first licensed non-dealing online forex trader to begin its operations in East Africa. It gives an opportunity to all its clients to trade in a range of instruments, including forex, commodities, precious metals and many more.
Regarding the warning issued by the Capital Markets Authority, the Chief Executive Officer of EGM Securities had this to say: “This recent warning issued by the Kenyan regulator, the Capital Markets Authority (CMA), makes their position very clear”.
“No forex broker can legally onboard Kenyan clients into any entity without an online forex license issued by the CMA. EGM Securities fully understands the concern of the CMA, and as the first regulated broker in the Region, we will continue to serve our community”, he added.
In an official announcement directed to the citizens, the Capital Markets Authority said that it shall take stern actions against anyone who engages or trades via unregulated platforms, and those who conduct such illegal trading and breach regulatory provisions by collecting clients’ funds for such purposes.
“Members of the public who have been affected or become aware of such illegal online foreign exchange transactions are advised to report to the Authority or to the Capital Markets Fraud Investigation Unit”, it further added.