To some the South East Asian country known as Malaysia is an excellent holiday destination. Yet this country is more than that, it’s also one of the world’s largest producers of palm oil and home to the world’s tallest twin towers, the Petronas Towers. In addition, this newly emerging economy is also leading center of the Islamic financial instruments. For example, Malaysia is the highest issuer of Islamic bonds called “Sukuk” in 2011 accounting for 69% of global issuances. As such, Malaysia plays a vital part in the global financial markets especially with its central stage role as leader of Shari’ah compliant financial instruments.
Regulatory Authority in Malaysia
The regulatory authority that supervises and regulates the financial industry in Malaysia is the central bank, Bank Negara Malaysia. Bank Negara is in charge of the following:
- Act As An Advisor And Banker To The Government Of Malaysia
- Ensure That All Financial Institutions Under Its Jurisdiction Comply With The Financial Laws Of Malaysia
- Ensure That The Exchange Rate Of The Ringgit Is Consistent With The Fundamentals Of The Economy
- Implement The Monetary Policies Of The Country
- Maintain Oversights Over The Forex Market In The Country
- Manages The Foreign Reserves Of The Country
Trading Binary Options In Malaysia
Apart from the above mentioned roles of Bank Negara, there are no restrictions on Malaysian to trade in the forex or binary options market online. Most restrictions are centered on domestic operations within the country. For example, it is illegal in Malaysia for any individuals or entity to be engaged in the financial industry and collect any form of deposits without being licensed by Bank Negara.
Another thing to note about trading binary options from Malaysia is the requirement to inform Bank Negara of any remittance which is above $10,000. This requirement imposed by Bank Negara was a result of the 1997 Asian financial crisis. Due to the actions of currency speculators, the Malaysian ringgit lost 50% of its value then. To regain control of the situation, Bank Negara imposed capital controls on the movements of the ringgit in and out of the country.
Because of this, Malaysian traders have a relatively free hand when it comes to online trading. Nevertheless, Malaysian customers should just stick to those binary brokers who are reputable and established. Do not be enticed by brokers who are offering high bonuses or low initial deposit requirements. Usually, these offers are just baits used by unscrupulous brokers to get traders to sign up with them. Instead go for a broker which is willing to provide good quality services.