Forex Trading in Pakistan, With the increasing number of offshore Forex trading platforms, the State Bank of Pakistan (SBP) has clarified that buying products/services from such platforms is prohibited and against the laws of the country
In a statement on Wednesday, the central bank pointed out that these trading platforms — like OctaFx, Easy Forex, etc. — entice people to buy/invest in their products or services through social media advertisements.
“The products include (but are not limited to) forex trading, margin trading, contracts for difference, etc.,” the statement said.
“Any person in Pakistan who purchases products or services from such offshore platforms and transfers foreign exchange to them, directly or indirectly through any payment channel, must be prosecuted for violating the provisions of the Foreign Exchange Regulation Act 1947 (FERA). ‘ it added.
As such platforms are not regulated by either the SBP or the Securities and Exchange Commission of Pakistan (SECP), the public has been advised to exercise caution and “refrain from purchasing/investing in products and services from such offshore platforms to avoid potential to avoid losses. “Avoid and court proceedings under FERA”.
The Central Bank also advised authorized traders to ensure compliance with the relevant sections of FERA and take all necessary measures to make payments to such Forex trading, CFD trading, margin trading websites/applications/platforms, to stop their customers through any payment channel.
The Bank has instructed authorized traders to inform their clients of the inherent risks and illegality of such trading with that person/entity.
Furthermore, they have been advised to set up an ongoing monitoring mechanism that will identify such trading websites/applications/platforms and block them from making payments through any payment channel.
“In the event that it is determined that an Authorized Dealer has failed to take the actions described above and has not facilitated the transactions, SBP may take action against such defaulting Authorized Dealer and take any financial or administrative action it deems necessary, in accordance with the relevant provisions of FERA “, the statement said.