The State Bank of Pakistan (SBP) has declared forex trading platforms such as OctaFX and Easy Forex illegal in Pakistan,
State Bank of Pakistan (SBP) warning Pakistani citizens that these platforms are not regulated by the central bank nor the Securities and Exchange Commission of Pakistan.
YouTube and other social media platforms are flooded with ad campaigns for such digital platforms, which have also joined the ranks of several so-called influencers to promote their services. As a result, an increasing number of Pakistanis are starting to turn to such trading platforms as a source of primary or passive income.
The SBP said in a statement on Wednesday that it “has noticed that an increasing number of offshore foreign exchange trading websites, mobile applications, and platforms such as OctaFX, Easy Forex, and others are offering their products and services to residents of Pakistan.” “These digital platforms help convince people to buy and invest in their products or services through social media advertisements.”
“Examples of such products include, but are not limited to, foreign exchange trading, margin trading, contract for differences, and so on,” the document stated. “It is clarified for the benefit of the public that buying products and services offered by the aforementioned platforms by any person belonging in Pakistan is prohibited and illegal under Pakistani law.”
People who buy goods and services from such offshore platforms and remit foreign exchange to them directly or indirectly through any payment channel would face legal action under the Foreign Exchange Regulation Act of 1947. (FERA).
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The central bank also advised authorised dealers to comply with FERA and take all necessary steps to prevent their customers from making payments to all such trading platforms via any payment channel.
OctaFx Bans for Pakistani National in future
The State Bank of Pakistan declared a ban on the Forex trading application and other similar products in a press release issued yesterday. The spokesperson stated in a statement that these are illegal and offshore sites where people are being attracted for margin trading and contract trading, but these platforms are not registered or regulated by SECP OR SBP. Anyone found trading these apps will be prosecuted under the Foreign Reserve Act.