Malaysia’s Financial Watchdog Warns of FXTM, OctaFx Clones

Malaysia’s Financial Watchdog Warns of FXTM, OctaFx Clones

The securities commission Malaysia (SC) has warned of two clone websites of registered brokers FXTM and OctaFx.  Furthermore, the SC included the two clones in its updated list of fraudulent and unregistered forex and investments websites.

The updated list features clone platforms posing as regulated brokers that are well known around the world. These fraudulent websites take advantage of regulated brokers like FXTM and OctaFx to defraud or pilot their services to unsuspecting customers.

According to the SC, heavy regulation of forex brokers in other Jurisdictions like Europe doesn’t automatically authorize in Malaysia. Therefore, the SC is warning investors to watch out for websites claiming their services are regulated and properly licensed.  Such fraudsters always aim to lure and mislead customers for the purpose of scamming them.

The SC Flags Down 10 Websites

The SC updated its list on February 2, 2021, explicitly to include 10 forex and investments websites as listed below:

  1. FXTM
  2. OctaFxPower Ltd
  3. HXFX Global
  4. Futu Inc
  5. E-Paradise
  6. Al Maju General Trading Co/Syarikat Al-Maju Trading
  7. Morood Investment Limited
  8. Xsocio Markets
  9. FP Market Trading Malaysia
  10. Ettijan Investment

The SC provides this information to caution Malaysian citizens against investing with unregulated and unapproved trading services or investment websites.

In fact, anyone operating unregulated or unlicensed in Malaysia commits an offence under the Capital Markets and Services Act of 2007. Afterwards, if found guilty and convicted, fraudsters face a punishment of up to ten years in jail and a hefty fine.

The SC embraces crypto-trading with Huobi Authorization

In related SC news, the watchdog is preparing itself to welcome and regulate the booming cryptocurrency industry. In fact, in November 2020, the SC authorized world-leading crypto-exchange Huobi to offer crypto trading services in Malaysia.

Huobi ranks as the world’s third-largest cryptocurrency exchange after Binance and Coinbase according to data by CoinMarketCap. At the present time, Huobi launched a regulated crypto-exchange via a local partnership deal which formed a local subsidiary, Huobi Labuan.

Currently, the subsidiary operates under the digital asset trading brokerage services license issued by the SC in September 2020.

Under the Malaysian financial Law, cryptocurrency exchanges are registered as Digital Assets Exchanges. The crypto-exchange has nine months since the official filing to meet regulations standards set by the SC.  Once standards are satisfactory, the SC will approve Huobi Labuan to offer spot and derivative trading services.

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