SC cautions investors against Crypto ATMS


  • Cryptocurrency
  • Thursday, 09 Jul 2020

The Securities Commission alerted the public that entities operating Crypto ATMs were considered to be operating a Digital Asset Exchange (DAX), which requires registration with the SC. “In this regard, the SC has not authorised any entity to operate Crypto ATMs, ” the SC said.

PETALING JAYA: The Securities Commission (SC) has cautioned the public against the usage of Crypto Automatic Teller Machines (Crypto ATMs).

The capital market regulator also warned all unauthorised Crypto ATM operators in Malaysia to immediately cease their activities.

In its statement, the SC yesterday alerted the public that entities operating Crypto ATMs were considered to be operating a Digital Asset Exchange (DAX), which requires registration with the SC.

“In this regard, the SC has not authorised any entity to operate Crypto ATMs, ” the SC said.

“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, ” it explained.

Crypto ATM is a machine that allows individuals to buy and/or sell digital assets via cash, debit/credit cards or e-wallets.

The machines are installed in various locations in the country, facilitating the exchange of different types of digital assets with fiat currency and vice versa.

The SC said operating a DAX without authorisation from the SC is an offence under securities laws.

Anyone convicted may be liable to a fine not exceeding RM10mil or imprisonment up to 10 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, investors are encouraged to alert the SC 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.

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