The Kenyan Government, through the Capital Markets Authority (CMA), has warned Kenyans over increased fraudulent activities associated with online forex trading.
CMA, on Monday, noted that there is an influx in companies and individuals offering online trading without the necessary license from the regulator.
CMA CEO Paul Muthaura stated that the authority is planning an action against all those engaging in illegal activity hence contravening the law.
He stated that as provided by the law, only one entity has been offered with the necessary license to carry the trade.
”In accordance with provisions of Section 23(1) of the Capital Markets Act and the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017, the CMA has issued only one license to EGM Securities Limited to operate as a non – dealing online foreign exchange broker,” stated Muthaura.
Muthaura further warned all entities involved in the illegal business to stop and seek for a license first.
According to reports in 2015, wealthy investors in the city had started coning people around the country.
It was reported that they were divided into four teams and the Nairobi team had conned unsuspecting Nairobians in the upwards of Ksh 300 million.
It was further revealed that VIP Portal, a forex brokerage firm based in Limuru, had consumed more than Ksh1.08 billion between 2013 and 2014
CMA has vowed to take action against all those involved in the trade with no license and has asked Kenyans to be very wary before investing their hard earned money anywhere.
