All offshore forex trading platforms are illegal: clarifies SBP

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KARACHI: State Bank of Pakistan (SBP) on Wednesday declared the use of forex trading platforms is illegal in Pakistan with a warning of legal action against the violators.

Most of the Pakistanis who use forex trading as a source of primary or passive income consider the use of platforms like OctaFX legal in the country. However, the central bank has put all sorts of ambiguity to an end.

The SBP said all offshore forex trading platforms, websites, and mobile applications are illegal.

It added that offshore platforms like OctaFX are rendering forex trading services and products such as margin trading, contract for difference (CFD), and others to Pakistanis and advertise themselves on the social media platforms to convince people to invest.

In the public interest, the central bank categorically said the residents of Pakistan are prohibited to use any product offered by forex trading platforms.

SBP warned that a resident of Pakistan who uses products and services of such offshore platforms and sends money directly or indirectly through any payment channel can be prosecuted for violating the Foreign Exchange Regulations Act (FERA) 1947.

It said such platforms are neither regulated by SBP nor the Security Exchange Commission of Pakistan (SECP) and advised the people to refrain from investing in such platforms to avoid potential loss and action under FERA.

Notably, offshore platforms like OctaFX lure people through different products of forex trading. All these platforms, operated from abroad, have a huge client base in Pakistan with investments worth millions of rupees.