November 12, 2020 | AtoZ Markets – Exinity Capital East Africa Limited, founded earlier this year by the owner of the Alpari and FXTM brokerage brands, Andrey Dashin, received a brokerage license in Kenya.
Exinity Capital becomes 4th online Forex broker in Kenya
Exinity is the fourth online reliable Forex broker to be licensed by the Capital Markets Authority (CMA), according to the local financial regulator. In addition to Exinity, Securities Ltd (FXPesa) in 2018, SCFM Ltd (Scope Markets) in 2019, and Pepperstone last month received permission to work in Africa.
This brokerage license allows Exinity Capital East Africa to provide its clients with access to the Forex market, but does not cover market making and account management.
The new African legal entity is part of the Exinity Group, established earlier this year by entrepreneur Andrey Dashin. The group is led by Olga Rybalkina, co-founder of FXTM. It includes various Dashin-owned retailers including Alpari International, ForexTime (FXTM) and a new brand in Nairobi.
CMA regulates Kenyan Forex brokers
To be licensed as a forex broker in Kenya, you need to be a limited share company, have a minimum capital of 30 million Kenyan shillings (about $ 277,000), and maintain a minimum capital of liabilities to clients plus five percent. In addition, 80% of the capital must be in cash or cash equivalents.
Read also: Kenya's Forex Reserves Decline Significantly to $8.2 Billion
With regard to applicants who are subsidiaries of a regulated foreign forex broker, they are required to provide evidence to support the existence of such a relationship. The parent company must also provide a letter from the regulator confirming that it has a license and that it has no claims or objections to operations in Kenya.
Commenting on the news, Acting CEO of AGR, Wyckliffe Shamiah, said:
“This is an important milestone in the Forex market as Kenyans can now choose from four service providers licensed by the CMA. In line with the mandate of the Investor Protection Authority, we urge Kenyans to trade only through licensed organizations in order to avoid the risk of fraud. We are working closely with licensees to identify strategies that can help us protect Kenyans from unlicensed organizations. ”
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