Securities Commission Malaysia Cautions Against Illegal Crypto ATMs

Securities Commission Malaysia Cautions Against Illegal Crypto ATMs

by July 9, 2020

The Securities Commission Malaysia (SC) cautioned the public against the usage of Crypto ATMs. Crypto ATM are machines that allows individuals to buy and/or sell digital assets like Bitcoin and Ethereum, and XRP. These machines are installed in various locations in Malaysia, facilitating the exchange of different types of digital assets with fiat currency and vice versa.

The regulator reiterates that Crypto ATM operators are considered to be operating a Digital Asset Exchange (DAX) which requires registration with the SC. In this regard, the SC said that it has not authorised any entity to operate Crypto ATMs.

The SC also warned all unauthorized Crypto ATM operators in Malaysia to immediately cease their activities. Operating a DAX without authorization from the SC is an offense under Malaysian securities laws. Anyone convicted may be liable to a fine not exceeding RM10 million or imprisonment up to ten years or both.

Members of the public may verify if a digital asset operator is registered with the SC. 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.