The Securities Commission Malaysia (SC) has added three more companies to its warning list, but most notably, its cautioned against two popular foreign exchange (forex) brokerages: Hot Forex and OANDA Malaysia Corporation.
The third one is Torque Market Limited or Torque Trader, a lesser-known trading services provider, which was additionally blamed for misrepresentation using the SC’s logo.
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The caution list was updated only a week after the financial regulator added 13 more companies, including the international and local brands of Alpari.
Is Local License Mandatory?
According to the SC, these brokerages are not licensed in Malaysia and thus not authorized to offer their services in the country. These companies are allegedly violating the country’s Capital Markets and Services Act 2007 and, if convicted, the promoters could be imprisoned and heavily fined.
The warnings list detailed that both Hot Forex and OANDA are ‘carrying out of the unlicensed capital market activities of dealing securities’, while the former is also ‘operating a recognized market without authorization from the SC’.
However, both the brokerages are well established and carry multiple licenses from international regulators.
Hot Forex is authorized under the regulators of the United Kingdom, the UAE, Cyprus, and a few others. Similarly, OANDA is regulated by the CFTC in the US, the FCA in the UK, ASIC in Australia, IIROC in Canada, the MAS in Singapore, and FFAJ in Japan – all of which are reputed regulators.
OANDA is headquartered in the United States, while Hot Forex is based out of Cyprus.
Earlier, the Malaysian regulator flagged Binance, eToro, OctaFX, and FintechFX, saying none of them are licensed to operate in the country.
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