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Screenshot of a breaking news alert e-mail from Q2 2017
A Kenyan based online Forex broker has appealed to the Government authorities in Kenya to introduce regulations to govern their operations within the FX trading industry. Kenyan based broker called VIP Portal Incorporated (INC) owners say they are being harassed and extorted by police for operating “illegally” when there is no laws or regulations that guides their operations!
The owners are pleading, “Let the Government assist us by introducing regulations that will guide how we operate. We should not be branded a pyramid scheme and accused of illegally operating an unregistered forex bureau when there is no law that guides us,” the organization’s director Charles Njuguna said during a press briefing at a Nairobi hotel.
He goes on to say he believes a proper regulatory framework will enhance an e-forex industry and make Kenya a legitimate trading nation in the world. He also asked the government as part of potential regulation to facilitate the introduction of liquidity providers who will integrate with the online trading framework and provide direct market feeds.
Njuguna said their institution is an established ECN forex broker serving both individual and corporate clients and it has up to 8,000 clients. For instance, he claimed, some police officers had extorted their CEO 2 million Kenyan Shillings (approx. $23,000 USD) for allegedly operating illegally. Njuguna said the issue was reported to senior police officers.
He also said the institution’s bank accounts have been frozen with more than 8 million Kenyan Shillings (approx. $92,000 USD) after they were branded a pyramid scheme, adding, “Other banks have been advised against opening an account in our name, which is turning out to be a scheme to try and finish us.” Earlier this summer, Njuguna said three members of staff at the institution were arrested and charged with operating a forex bureau illegally.
We reported back in June that Kenya was looking to clear and regulate its first futures exchange by September. Maybe, the financial regulators can also get their ducks in a row regarding the retail and online FX trading industry as popular as it has become. This would seem like the common sense thing to do as Kenya has the Capital Markets Authority (CMA) regulator in place to oversee FX activity. This would be best for local brokers and clientele to feel safe and protected within the law. For the record, the broker VIP Portal claims they are registered in St. Vincent & Grenadines with LICENSE NO: 21787/ IBC/ 2013.