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Malaysia central bank states Forex is illegal

  • #101
  • Jan 17, 2010 9:05am Jan 17, 2010 9:05am
Buying / Selling of Currency is a gray subject.

What constitute BUYING / SELLING a currency?
Strictly speaking, when BUYING a BREAD, you'd use the currency in your country to purchase. And when SELLING the same, you'd collect the currency of your country.

However, when BUYING/SELLING a forex position, as long as you do not involve your local currency, IT IS NOT considered BUYING/SELLING.

ie, when you go LONG EURUSD, or SHORT USDJPY etc, as long as this transaction does not involve your local currency, then it is NOT ILLEGAL as the ruling describes.

The main purpose of the aforementioned PRESS STATEMENT is to prevent people/groups of people to manipulate the rate of your local currency to prevent the 1997 Asian Financial Crisis.
  • #102
  • Jan 17, 2010 9:07am Jan 17, 2010 9:07am
1. Futures is an exchange-traded product i.e. traded on exchanges like the CME with fixed trading contract sizes, particular delivery details.

2. Check out http://www.investopedia.com/articles.../04/102704.asp

3. It's not a question of whether it's allowed or not in Malaysia. It just doesn't exist in Malaysia i.e. our exchanges do not offer it at this moment.

4. If it doesn't exist, there need not be any law outlawing it. It's just like trying to outlaw flying pigs, when everybody knows pigs don't fly.

5. If a Malaysian has a seat on the CME (or any of the international exchanges) or if he has a margin account with any of the overseas futures brokers, I see no reason why Malaysians cannot trade forex futures, using ECM 9 as their basis.

6. ...Although I don't see why they should have to trade futures since Spot FX is more liquid.


Quoting yesbee1
Isn't forex futures an option for Malaysian traders? Is it allowed in Malaysia?
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #103
  • Jan 17, 2010 9:23am Jan 17, 2010 9:23am
Quoting imranyusof
It's just like trying to outlaw flying pigs, when everybody knows pigs don't fly.

However, the lawmakers would counter by saying:
"the law works ; there are no flying pigs because there is a law against it and the pigs are scared stiff betting cooked err caught..."
  • #104
  • Jan 17, 2010 10:25pm Jan 17, 2010 10:25pm
  •  Jey
  • | Joined Jun 2009 | Status: Market Slave-Overworked/Underpipped | 283 Posts
To be fair to Imran, I think his points are quiet interesting and does cast a very serious doubt over BNM's blanket ban on anything that sounds "currency". I was thinking over this during the weekend, and the more I think, the more confusion there is. Like Imran says, they dont seem to be clear-cut with their answers thereby making various possibilities to the true interpretation of the matter. Therefore, if I had misinterpreted, then I stand corrected.

Like Imran says, lets wait till a big fish is hooked and made a precedent in prosecution. Till then, good luck to everyone.
I have seen the enemy, and it is me.
  • #105
  • Jan 18, 2010 3:27am Jan 18, 2010 3:27am
1. To be fair to Jey, he may not be wrong either. But being in my line of work and knowing how central banks "talk", I would think I have a unique alternative insight on this issue.

2. I think confusion is exactly what BNM wants for the purpose of keeping the countryside yokels out of the market, without having to tell the people that FX trading is actually ok when done within the scope of existing rules. (Unless BNM actually comes out and completely nullifies ECM9 clearly and without being annoyingly vague)

3. And if BNM wants to play this kind of game, we should just let them, and we make our money quietly.

4. It's to our benefit anyway, because when the dust settles (as it usually does), only serious investors will be left in the market and the rest of the "rakyat" will go into unit trusts.

5. But I'll bet you this issue will crop up again after a year or sooner, and the same old BNM statements will be re-hashed, and fresh entrants into the market will come out asking the same old questions, why this and why that, and "why is the gomen so damn blardy unfair?"


Quoting Jey
To be fair to Imran, I think his points are quiet interesting and does cast a very serious doubt over BNM's blanket ban on anything that sounds "currency". I was thinking over this during the weekend, and the more I think, the more confusion there is. Like Imran says, they dont seem to be clear-cut with their answers thereby making various possibilities to the true interpretation of the matter. Therefore, if I had misinterpreted, then I stand corrected.

Like Imran says, lets wait till a big fish is hooked and made a precedent in prosecution....
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #106
  • Feb 27, 2010 10:01am Feb 27, 2010 10:01am
Guys i found some useful info
Foreign Currency = Currency notes and coins

From:
http://www.bankinginfo.com.my/04_hel...tPrefLangID=1&

Hope it can help
  • #107
  • Feb 27, 2010 6:31pm Feb 27, 2010 6:31pm
Quote
Bank Negara Malaysia would like to caution members of the public not to participate in any illegal investment or training programme on foreign currency trading offered by individuals or companies both domestic and foreign.


This Statement is very broad and honestly it prohibits you from trading forex of any kind. Whether you are trading EURUSD or USDJPY even without Malaysian currency involved, this statement prohibits you TOTALLY!

Therefore, if you are Malaysian or in Malaysia, Forex is Illegal.

Currency Pair as an Instrument to get around this law? Ya right, sure go ahead and explain that once you are apprehended. Read again "foreign currency". That should be clear whether you are trading USDMYR or USDJPY, as long as there is foreign currency involved, its illegal.

But this law did not state about GOLD (or OIL)! Gold is not a currency and therefore, trading GOLD vs MYR should not be illegal.. Now all you have to do is find a broker allowing GOLD vs MYR! LOL!
  • #108
  • Mar 8, 2010 11:12am Mar 8, 2010 11:12am
Is anyone of you TT money to the platform oversea? I wish to do it at maybank but i dun want to ask forex is illegal or not.

I heard the max is RM10,000. How much is the TT charge exp: I deposit USD 1000.

Can anyone help?
  • #109
  • Mar 8, 2010 1:27pm Mar 8, 2010 1:27pm
erm just use maybank2u and TT. the charge will be listed when you do the transaction i think, then u can confirm the payment.

i myself used maybank2u and TT, no problem there.
  • #110
  • Mar 9, 2010 2:40am Mar 9, 2010 2:40am
Do you mean you can use internet banking to TT money oversea?
  • #111
  • Mar 9, 2010 2:45am Mar 9, 2010 2:45am
me too. maybank2u.
  • #112
  • Mar 9, 2010 3:00am Mar 9, 2010 3:00am
Yes happy girl, just choose Telegraphic Transfer(TT)

If you need help , send me your MSN to my email and i can try to answer your Question personally. If not just google "maybank deposit funds ibfx" Theres a PDF file which will help you.


you can also go to their website and ask for customer support.
  • #113
  • Mar 9, 2010 9:05pm Mar 9, 2010 9:05pm
So far I had no problem... Two months back, I just TT to fund my gomarket standard account via Maybank over the counter.
  • #114
  • Mar 10, 2010 1:52am Mar 10, 2010 1:52am
So pity for malaysian people..
Hard to believed that some country use such as regulation for their people..

But, maybe gov just want save you all from MC...hu3
  • #115
  • Mar 10, 2010 8:43am Mar 10, 2010 8:43am
Quoting EdgarNg
Yes happy girl, just choose Telegraphic Transfer(TT)

If you need help , send me your MSN to my email and i can try to answer your Question personally. If not just google "maybank deposit funds ibfx" Theres a PDF file which will help you.


you can also go to their website and ask for customer support.
Thanks a million! I appreciate it.
  • #116
  • Mar 10, 2010 8:46am Mar 10, 2010 8:46am
Quoting analog84
So pity for malaysian people..
Hard to believed that some country use such as regulation for their people..

But, maybe gov just want save you all from MC...hu3
What to do? Sigh. We can't protest too!
  • #117
  • Mar 11, 2010 12:59pm Mar 11, 2010 12:59pm
Quoting equilec
So far I had no problem... Two months back, I just TT to fund my gomarket standard account via Maybank over the counter.
Hi Equilec,

No problem over the counter with Maybank? I wonder if it is because the Beneficiary name does not have the word "forex" or "fx" in it ( since it is GO Market).
Had it been IBFX with the beneficiary as Interbank FX, maybe they would have questioned you............

I always have this reservation to deposit or withdraw via bank wire or even credit cards since such methods will leave a 'trail' for banks or Bank Negara to probe.
What do you think?

CY
  • #118
  • Mar 11, 2010 1:05pm Mar 11, 2010 1:05pm
i think ive heard stories where they question you when u try to deal FX on over the counter .
  • #119
  • Mar 12, 2010 2:12am Mar 12, 2010 2:12am
Quoting ertorque
Hi Equilec,

I always have this reservation to deposit or withdraw via bank wire or even credit cards since such methods will leave a 'trail' for banks or Bank Negara to probe.
What do you think?

CY
As long as u transfer money out from Malaysia legally, definitely there's a trail and yes, BNM can also zoom in and check urs, assuming they choose u among all the tan sri, datuk, dato, datins, etc etc in town.

2nd, even if the choose u, they can see that your money went to which bank and beneficary name. But what the beneficiary, i.e. your broker do with your money, BNM cannot see, if they try to hack in and see, they can be sued by the broker or its Govt.

So they only know who u transfer to, but they can proof for what purpose, unless, they get Interpol, CIA or the corresponding govt invovlement. If ur a tan sri, pay a nominee/runner to do this for u lar.
  • #120
  • Mar 13, 2010 1:22am Mar 13, 2010 1:22am
Quoting fxster
As long as u transfer money out from Malaysia legally, definitely there's a trail and yes, BNM can also zoom in and check urs, assuming they choose u among all the tan sri, datuk, dato, datins, etc etc in town.

2nd, even if the choose u, they can see that your money went to which bank and beneficary name. But what the beneficiary, i.e. your broker do with your money, BNM cannot see, if they try to hack in and see, they can be sued by the broker or its Govt.

So they only know who u transfer to, but they can proof for what purpose, unless, they...
You are right.
One thing though, if they probe DO probe you, it will be a case of you having to show that you DID NOT trade forex rather than for them to show that you trade forex.
What I am saying is they will say " ok if you're clean, show me all your transactions" ..........
So bottom line is do not open any trails for them to probe. Just my 2 cents...........

CY
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