Malaysia’s SC cautions public on usage of Crypto ATMS
By Digital News Asia July 9, 2020
- Regulator has not authorised any entity to operate Crypto ATMs
- Public exposed to various risks, including fraud & money laundering
The Securities Commission Malaysia (SC), yesterday, cautioned the public against the usage of Crypto Automatic Teller Machines (Crypto ATMs).
Crypto ATM is a machine that allows individuals to buy and/or sell digital assets via cash, debit/credit cards or e-wallets. These machines are installed in various locations in Malaysia, facilitating the exchange of different types of digital assets with fiat currency and vice versa.
In its press release, the SC is alerting the public that entities operating Crypto ATMs are considered to be operating a Digital Asset Exchange (DAX), an action which requires registration with the SC. In this regard, the SC highlights that it has not authorised any entity to operate Crypto ATMs.
“As such, we wish to caution and remind members of the public not to deal with unlicensed or unauthorised entities or individuals. Those who do so are not protected under the Malaysian securities laws and are exposed to various risks, including fraud and money laundering,” the SC warns.
The SC also warned all unauthorised Crypto ATM operators in Malaysia to immediately cease their activities. Operating a DAX without authorisation from the SC is an offence under Malaysian securities laws. Anyone convicted may be liable to a fine not exceeding US$2.3 million (RM10 million) or imprisonment of up to ten years or both.
Members of the public may verify if a digital asset operator is registered with the SC at https://www.sc.com.my/development/digital/digitalassets.
Additionally, the SC is urging investors to alert it if they come across any suspicious activities or websites, and if they receive any unsolicited phone calls or e-mails offering investment advice and opportunities, especially those that offer high returns with seemingly little or no risks.
Queries/complaints can be made to [email protected]