The Yangon Region Gold Entrepreneurs Association has sought a license for gold trading through its mobile application from the Department of Mines, under the Ministry of Natural Resources and Environmental Conservation, said U Myo Myint, the chair of the association.
“Traders will have to deposit money into a bank account. We want gold trading through the mobile app to be legal as the platform will be used for formal payments. It will take some time to get the license,” said U Myo Myint.
The association applied to the Department of Mines for its online trading platform in late 2018.
“We have sought a license for online gold trading. The Department of Mines passed our request and forwarded it to the office of the Attorney General. It has not been cleared yet,” said U Myo Myint.
The software for the trading platform was developed to promote gold trading. The YGEA mobile app will be officially launched at an event on 26 January.
The mobile trading app aims to ease trading for members of gold entrepreneurs associations, forecast the most probable moves in the market, provide profit-and-loss statements, and adopt systematic trading, in line with international criteria.
The mobile trading platform will be made available only to members who put in the deposit set by the association. Mobile trading using deposits is more secure. The mobile platform will help improve efficiency by discounting new information and driving the market into equilibrium much quicker, according to the Yangon Gold Entrepreneurs Association.
“The mobile trading platform has been created to allow both local and foreign investors to trade in gold. Therefore, we have also applied for a money changer license from the Central Bank of Myanmar to set up a legal payment channel for the flow of foreign income,” according to the association.
“When foreigners purchase gold through the mobile app, they will pay in dollars. We want that earning in white money. We can hold foreign currency only if we have a money changer license. That license is only to hold foreign currency, yet not to conduct foreign exchange operations,” said U Myo Myint.
At present, the online trading platform through the app is being used by members of the Yangon and Mandalay gold entrepreneurs bodies. The Yangon Gold Entrepreneurs Association has 700 members, while the Mandalay association has about 300 members.
By Nyein Nyein (Translated by Ei Myat Mon)