Malaysian regulator warns against Binance clone KuCoin

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Malaysia’s financial regulator has re-listed another group of cryptocurrency websites, citing that their brands are not allowed to operate in the country.

First, the Securities Commission (SC) said that leading crypto exchange KuCoin and its associated brands are conducting capital market activities without a license. The Seychelles-based company, which reportedly has over 20 million users across 200 countries, is the world’s fifth-largest crypto exchange by trading volume, competing with Coinbase, Binance and Kraken.

Notably, the updated list includes names of fraudulent clone platforms that impersonate well-known regulated platforms around the world, including a fake website called Binance Futures Investment.

Earlier in March, Binance acquired a stake in MX Global Sdn Bhd, months after the world’s largest cryptocurrency exchange left the country in regulatory license limbo.

Binance made an undisclosed equity investment in MX Global to help it build brand awareness and introduce new products into Malaysia’s regulatory framework.

The watchdog has also sounded the alarm about another fraudulent company, but this time highlights a mix of cryptocurrency and investment scams. The SC, as part of its enhanced market surveillance, has declared a company called Sultan Pelaburan Malaysia an unlicensed trade provider, warning all retail investors of the risks of dealing with it.

The Sultan Pelaburan Malaysia website claims to offer crypto and binary investment plans, with returns ranging from 10% to 100% after 6 to 12 hours, which alerts investors.

Predictably, sites such as Sultan Pelaburan operate as a High Yield Investment Program (HYIP) where returns are always questionable, although they tend to dry up long before the amount of l initial investment is reimbursed. The company does not provide any legitimate proof of payments and it is likely that no one will ever see any money.

Elsewhere, the Securities Commission has also flagged a digital asset investment firm called XRP Trading and put the company on its unlicensed operator caution list.

The watchdog advises its citizens not to use such services or make investments with companies or individuals that are not approved or licensed by the SC.

Anyone who engages in regulated activities without a valid SC license or registration is committing an offense under the Capital Markets and Services Act 2007. If found guilty, he can be punished with imprisonment for up to ten years and a fine.

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