SBP declares currency trading on the platform illegal
- Currency trading platforms such as OctaFX, Easy Forex, etc. encourage clients to trade on their platforms.
- Many citizens invest and trade on these platforms.
- According to the new SBP regulatory guideline, sending money abroad for foreign exchange transactions is both dangerous and illegal.
Clients are attracted to trade on multiple currency trading platforms; like OctaFX, Easy Forex, etc. They have a large advertising presence on popular social media sites like Facebook, Youtube, etc. On these platforms, many people trade and invest. Some investors took advantage of this; while others lost money. It has since been discovered that trading on these platforms is prohibited. Use apps, websites or platforms like OctaFX to engage in currency trading; leveraged trading or contract for difference (CFD) trading is dangerous and illegal; according to a new SBP regulatory regulation.
Additionally, they leverage social media marketing to pitch their products; Pakistani citizens and attract them; to buy their products. These purchases made by Pakistani citizens; are against section 4(1) of the FERA. Additionally, it has been found that Authorized Resellers (AD); make payments on these offshore trading platforms; through their payment gateways.
The SBP statement goes like this:
“The attention of Authorized Dealers (AD) is drawn to Section 4(1) of the Regulation of Foreign Exchange Act 1947 (FERA); which, inter alia, provides, ‘Except with general or special authorization prior to the State Bank, no person other than an authorized reseller may be in Pakistan; and no person residing in Pakistan other than an authorized reseller shall leave Pakistan; buy or borrow, sell, lend or exchange with anyone who is not an authorized dealer; any foreign currency. Similarly, the attention of DAs is also drawn to Section 5 ((1(a)) of the FERA which provides; “Except to the extent that as may be provided in and pursuant to any general or special exemption from the provisions of this subsection; which may be conditionally or unconditionally granted by the State Bank, no person in Pakistan or resident in Pakistan shall: (a) make a payment to or for the credit of u no one residing outside Pakistan. »