KUALA LUMPUR (Jan 27): The Securities Commission Malaysia’s (SC) updated investor alert list now includes nine additional entities comprising FXCM, Investopedia, AMC Management & Services, Infinox, DS Investment, Cappacity Fx Trading, Bitto Exchange Pte Ltd, Jebat Crypto and Esmash Investment Plan.
The SC's investor alert list on the regulator’s website is a section containing a list of unauthorised websites, investment products, companies and individuals, it said.
Among the newly-added entities, the SC claimed that FXCM and Investopedia were "carrying on unregulated activities”. The SC, however, did not specify the nature of the unregulated activities.
The SC claimed that Investopedia is a “possible clone offering high returns of RM26,500 for a minimum investment of RM1,500”.
Meanwhile, Bitto Exchange, Jebat and Esmash were added to the SC’s investor alert list for “operating a digital asset exchange (DAX) without registration".
The SC said on its website that following the coming into force of the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 on Jan 15, 2019, and the subsequent issuance of the revised Guidelines on Recognised Markets on Jan 31, 2019 to introduce new requirements for DAX operators, the SC has now registered three recognised market operators (RMOs) to establish and operate DAX in Malaysia.
The three RMOs are Luno Malaysia Sdn Bhd, SINEGY Technologies (M) Sdn Bhd and Tokenize Technology (M) Sdn Bhd, according to the SC.
FXCM claimed on its website that the group is a leading provider of online foreign exchange trading, CFD trading, spread betting and related services since 1999.
Beginning January 2015, through a series of transactions, Leucadia Investments has become the majority economic owner of FXCM, according to FXCM.
"Leucadia Investments is part of the merchant banking arm of Jefferies Financial Group,” FXCM said.
Meanwhile, the "possible clone Investopedia" as indicated by the SC appears to be similar to investment education website Investopedia, which is part of the Dotdash publishing family.
According to Dotdash’s website, the group's brands include Verywell, Investopedia, The Spruce, The Balance, Byrdie, MyDomaine, Brides, Lifewire, TripSavvy, Liquor.com, Treehugger and ThoughtCo.
"Since Investopedia was launched in 1999, we’ve made it our mission to simplify complex financial information and decisions for our readers, giving them the confidence to manage every aspect of their financial life,” Dotdash said.