The Capital Markets Authority is warning forex traders about the rising cases of unregulated online trading and its associated risk to those investing.
According to the regulator, the increased number of companies offering online forex trading services without having been licensed is concerning and the regulator plans to take appropriate enforcement action.
During the 2018 policy round table, the regulator cited Cybersecurity as an area the authority needed to effectively get involved in.
‘’Technology use in the financial sector is already disrupting the traditional regulatory tools forcing regulators to keep pace with the changes. Going forward, increase in use of machine learning and artificial intelligence among other technologies, in the capital markets is a writing on the wall. The complexities in the capital markets are only going to increase with time.’’ Mr Muthaura said during the roundtable forum, which also aims to look at other areas including amending the Capital Markets Act and Proposed foreign income tax amnesty filing extension to 30th June 2019.
