A Kenyan firm carrying out forex trade wants the government to formulate guidelines for electronic currency transactions adding that lack of proper legislation has led to a "misunderstanding" of its business by the
VIPorta said its an electronic communication network forex broker which serves individual and corporate clients where various investors put their money in a pool which is then used for the trading. However, it said, the CBK has termed it a pyramid scheme hence causing panic among its clients.
Currency trading is conducted electronically over the counter which means that all transactions occur via computer networks between traders around the world.
"Increase in long term forex trading will be beneficial for the
The company has a case pending in court where its charged with allegedly operating a forex bureau without a licence.
"We do not operate in cash. We do not exchange actual money whereas a forex bureau deals in hard cash. We link ourselves to the international currency market through an electronic framework," said another VIPortal trader
CBK did not respond to The Star's request for comment.
The forex exchange market is deemed the most liquid financial market globally with average transactions of slightly over
Trading is usually based on the world reserve currency -the dollar- in the market that is open for 24 hours for five working days.
VIPortal said it was incorporated in
Apart from being registered in
"The type of interest your money earns is huge. If you can get 60 per cent a month for your investment, what is it compared to 10 per cent per annum that banks give?" posed Njuguna.
Njuguna has urged the company's clients to remain calm in the mean time as it works to resolve the issues.
VIPortal said it pays clients after every 29 trading days adding that it has been unable to at the moment because of its frozen accounts.
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