CMA proposes tough rules for online forex traders in Kenya
By Patrick Alushula | Tuesday, Jul 19th 2016 at 00:00
Share this story:
CMA currently regulates all trading taking place on the Nairobi securities Exchange. It wants to extend its regulatory powers to cover online forex trading.
NAIROBI: The Capital Markets Authority (CMA) is proposing tough regulations on businesses and brokers involved in online foreign currency trading.
Through draft regulations named ‘Licensing requirements for online forex brokers and conduct of online forex business’, companies seeking to enter forex trading will be required to have capital of at least Sh50 million.
Where an applicant is an online forex broker in another jurisdiction, the applicant will have to commit that the Sh50 million will be maintained in Kenya at all times. In addition, the regulator also wants such businesses to have at least Sh40 million, being 80 per cent of their capital, in liquid form.