A Kenyan forex trader is petitioning the government to roll out rules governing the forex industry in order to shield participants from extortion by law enforcement officials.
Officials of VIP Portal Incorporated complained that police extorted and generally harassed them for operating illegally yet there is no law to guide their operations, reported Kenyan newspaper, the Standard.
“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 unregistered forex bureau when there is no law that guides us,†INC’s director Charles Njuguna told the press in a hotel in the capital of Nairobi.
Mr. Njuguna said the presence of a clear regulatory framework will boost the electronic forex industry in the country. Kenya’s is the biggest economy in East and Central Africa, with sophisticated financial industry. It also the most prolific country in terms of the use of mobile money, thanks to the innovative Mpesa mobile money transfer platform.
Mr. Njuguna requested the government to support liquidity providers who will link with the online trading platform and supply direct market feeds. He insisted that his company is a registered ECN FX broker that caters to 8,000 individual and corporate clients. Mr. Njuguna also detailed how some law enforcement officers had extorted the company’s CEO 2 million Kenya Shillings (roughly $23,000) for operating an illegal business, something that was reported to high-ranking police officers.
He also lamented that the company’s bank accounts were frozen with at least 8 million shillings (roughly $92,000) after the firm was called a pyramid scheme (Ponzi scheme). Banks were also told not to carry out any transactions with the company, added Njuguna. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Yashu Gola at yashu@forexminute.com
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