Lirunex's Asian Expansion Faces Regulatory Hurdles in Malaysia

<p>Just a few
months after Lirunex announced its expansion into the Asian region, one of the
local regulators added the FX/CFD broker to its warning list. The Securities
Commission Malaysia (SCM) reported this week that Lirunex is offering local
traders unauthorized access to investment products.</p><p>Lirunex Expands into Asia
but Faces Challenges</p><p>Finance
Magnates reported in August that Lirunex continues its expansion. <a href="https://www.financemagnates.com/thought-leadership/lirunex-limited-continues-expansion-adding-africa-to-its-jurisdictions/" target="_blank" rel="follow">After opening
up to the African market</a> in 2021, the company decided to focus more <a href="https://www.financemagnates.com/institutional-forex/lirunex-expands-reach-enhances-fx-and-cfd-services-in-china-thailand-and-vietnam/" target="_blank" rel="follow">on the
Asian market in 2023</a>. The broker's local offices are located in Hong Kong and
Malaysia.</p><p>The Kuala
Lumpur office was launched in 2022 and serves as a trading <a href="https://www.financemagnates.com/terms/h/hub/">hub</a>. Its role is to
employ market experts who conduct training for local retail investors through
online and offline events.</p><p>However,
there are indications that despite having an office in Malaysia, the operator
of the Lirunex trading brand does not have a license to provide investment
services in the country. <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> checked the SCM's registry of
licensed companies, and Lirunex is currently not listed.</p><p>According
to information provided by the Malaysian regulator, in addition to <a href="https://www.financemagnates.com/tag/lirunex-limited/" target="_blank" rel="follow">Lirunex</a>, two other
entities, Sahabat Investing F9 and CCF Trade, have also been added to the
warning list. Both offer services in the area of retail FX and CFD trading.</p><blockquote><p lang="en" dir="ltr"><a href="https://twitter.com/LirunexLimited?ref_src=twsrc%5Etfw">@LirunexLimited</a> <a href="https://twitter.com/hashtag/FX?src=hash&amp;ref_src=twsrc%5Etfw">#FX</a> <a href="https://twitter.com/hashtag/CFD?src=hash&amp;ref_src=twsrc%5Etfw">#CFD</a> broker on Securities Commission <a href="https://twitter.com/hashtag/Malaysia?src=hash&amp;ref_src=twsrc%5Etfw">#Malaysia</a> <a href="https://twitter.com/hashtag/warning?src=hash&amp;ref_src=twsrc%5Etfw">#warning</a> <a href="https://twitter.com/hashtag/list?src=hash&amp;ref_src=twsrc%5Etfw">#list</a>. Few months after it announced its expansion into the <a href="https://twitter.com/hashtag/Asian?src=hash&amp;ref_src=twsrc%5Etfw">#Asian</a> markets <a href="https://t.co/bwSp5Y8iJb">pic.twitter.com/bwSp5Y8iJb</a></p>— Damian Chmiel (@ChmielDk) <a href="https://twitter.com/ChmielDk/status/1717482577492160964?ref_src=twsrc%5Etfw">October 26, 2023</a></blockquote><p>The Malaysian Regulatory Commission remains active in the markets and regularly updates its warning list. Some time ago, <a href="https://www.financemagnates.com/forex/news-nuggets-5-june-brokeree-advance-markets-partner-illegal-brokers/" target="_blank" rel="follow">it added as many as 25 entities</a> to it, including popular brands, such as AETOS and Windsor Brokers. In the meantime, it has revised its guidelines to allow stockbroking companies <a href="https://www.financemagnates.com/forex/news-nuggets-7-september-fortex-adds-cbcx-markets-new-etoro-uk-finance-head/" target="_blank" rel="follow">to offer fractional share trading</a> on Bursa Malaysia.</p>

This article was written by Damian Chmiel at www.financemagnates.com.