- Today, the Securities Commission Malaysia (SC) warned Malaysian citizens to beware of the use of Crypto ATMs.
- The organization has not authorized any entity to regulate such Crypto ATMs in Malaysia.
- Apart from this, SC cautioned the unapproved Crypto ATM regulators to terminate their activities as soon as possible.
Today, the Securities Commission Malaysia (SC) warned the Malaysian citizens to beware with the use of Crypto ATMs (Crypto Automatic Teller Machines) as the organization has not authorized any entity to regulate such Crypto ATMs in Malaysia.
Digital Asset Exchange (DAX) to get registered with the SC
According to SC, the Crypto ATMs established in several locations of Malaysia, enabling conversion of various sorts of digital assets with fiat currencies and vice versa. The organization addressed in its statement today that the citizens must be aware of the firms operating Crypto ATMs. These firms are known as a Digital Asset Exchange (DAX). However, these types of firms are required to get registered with the SC. But, for this matter, none of the entities have been authorized to operate Crypto ATMs.
Further, SC added that operating a DAX without permission of SC will be an offense under the Malaysian securities laws. Besides this, if anyone finds this, wrongdoing will be fined approximately RM10 million or imprisonment of 10 years or both.
SC cautioned unlicensed Crypto ATMs
A few months ago, the Securities Exchange of Malaysia had approved to legally operate a crypto exchange in the country amid the COVID-19 crisis. Tokenize Malaysia, a crypto exchange operator, has received a clear approval from SC. To regulate digital asset exchange in Malaysia.
Apart from this, SC cautioned the unapproved Crypto ATM regulators to terminate their activities as soon as possible. The SC notified that anyone operating an illegal DAX would be liable to fine.
Additionally, SC has published the list of verified digital asset operators on its website. It further requested investors to immediately inform the SC if they came across any unlawful acts also, if they receive any misleading phone calls or emails that offer high-returns investment opportunities.