The State Bank of Pakistan Wednesday issued an advisory against illegal offshore foreign exchange trading websites, mobile applications, and platforms.
The central bank said that it has noticed an increasing number of offshore foreign exchange trading websites, mobile applications, and platforms such as OctaFX, and Easy Forex which are offering their products and services to residents of Pakistan.
These digital platforms lure people through social media advertisements to buy/invest in their products or services. The advisory said that examples of such products include but are not limited to foreign exchange trading, margin trading, and contract for differences.
The central bank warned that buying products and services being offered by the aforementioned platforms by any person residing in Pakistan is prohibited and against the laws of the land.
It further said that any person in Pakistan buying products or services of such offshore platforms and remitting foreign exchange directly or indirectly to them through any payment channel is making himself/herself liable to be proceeded against for violation of provisions of the Foreign Exchange Regulation Act, 1947 (FERA).
It further added that since such platforms are regulated neither by the SBP nor by the Securities & Exchange Commission of Pakistan (SECP); hence, the public is advised to be careful and refrain from buying/investing in products and services of such offshore platforms to avoid any potential loss and legal proceedings under FERA.