According to the Malaysian Securities Commission (SC), traders of cryptocurrencies should aware of the frauds and scams when it comes to trading. While there are many names out there that offer various types of services, traders should be aware of even the most ‘legitimate’ ones.
Find out before investing
The main reason you should be wary of this is that many so-called cryptocurrency platforms are not registered in Malaysia. So far, only 3 names have been registered and authorized to carry out cryptocurrency trading in the country which are Luno, Tokenize and SINERGY. While users are able to still trade on other platforms, the risk is higher and they might end up having no one to turn to in the event of a dispute.
Who should you be concerned with?
The biggest culprits would be fraudulent clone platforms. There are names that are popular and credible but that would also mean that there are some that cloning these platforms, allow similar features and then users end up losing their money thinking that they are investing in genuine exchanges. As such, it would be most reliable to work only with the 3 approved DAXs.
For instance, OctaFX and FXTM are very credible exchanges in Europe but are not authorized in Malaysia. There have been reports that there have been clones of these platforms operating on the internet. Another issue that investors should be aware of is with platforms advertising that they are authorized to provide such services in Malaysia. You can always check and verify this on SC’s website if in doubt. The latest list of companies or platforms that are NOT authorized in Malaysia includes (not limited to and will be added) :
- FP Market Trading Malaysia
- Ettijah Investment
- Morood Investment Limited
- HXFX Global
- Al Maju General Trading Co/Syarikat Al-Maju Trading
- Futu Inc
- Xsocio Markets
- OctaFxPower Ltd