Dear Readers,

Major updates for Labuan (Malaysia) license holders.

Following a sequence of regulatory breaches by local companies during the last years (Forex scam leaves 400 victims RM100mil poorer, claims NGO) and (Interpol-wanted gaming operator’s RM371 million laundering scheme foiled by Bukit Aman’s AMLA unit) the local regulator – LFSA, decided to take a more stringent approach.

1) Regulatory paid-up capital for local Money Broker companies will be increased to RM 1,5mln (increase by 100% for those operating with virtual currencies) or to RM 1.0mln (for those operating only in FX CFDs);
2) Leverage of cryptocurrency CFDs will be limited to 1:1
3) Local Money Broker companies (default authorization for FX CFD brokers) will be limited to spot FX, CFDs on FX, without the ability to offer CFDs on other non-currency instruments (i.e. no CFDs on shares, ETFs, commodities);
4) And other operations and administrative changes.

If you are interested to learn more about the changes and how it affects your business, contact our team via info@zitadelleag.com #regulations