SINGAPORE: The authorities have blocked the website of an unregulated trading platform allegedly registered in Belize, Arotrade, after receiving complaints from at least 40 Singapore residents.
Arotrade purports to offer trading in Contracts for Difference (CFDs) for different asset classes such as stocks, foreign exchange, commodities, cryptocurrency and indices in the website https://www.arotrade.com.
These individuals had transferred more than S$330,000 (RM1.012 mil) in total to trade through Arotrade but subsequently experienced unauthorised trades in their accounts or encountered difficulties withdrawing their monies.
The Police, Infocomm Media Development Authority (IMDA) and the Monetary Authority of Singapore (MAS) revealed this in a joint statement today.
Police investigations revealed that Arotrade has been linked to fraudulent marketing tactics, including the use of fake news articles falsely claiming that prominent individuals, including Singapore’s political office holders, have endorsed investments in cryptocurrency, which misled and channelled people to Arotrade’s website.
Under Section 82 of the Securities and Futures Act (SFA), a capital markets services licence is required for an entity to carry on business in a regulated activity, including dealing in CFDs in securities and foreign exchange contracts.
Arotrade does not have a licence and is therefore prohibited from carrying on such a business, said the authorities.
“This prohibition extends to persons acting outside Singapore, where there is a substantial and reasonably foreseeable effect in Singapore,” they said.
Based on information gathered, the Police and MAS have assessed that the services on Arotrade’s website offered to Singapore residents are in breach of the SFA.
Consequently, IMDA has determined that the information on the website constitutes prohibited content under the Internet Code of Practice and directed the internet access service providers to block access to Arotrade’s website from Singapore residents, and they have done so. – May 28, 2020, Bernama
