Securities Commission Malaysia Registers Three Crypto Exchanges

News, Regulation | June 5, 2019 By:

The Securities Commission Malaysia (SC) has registered three Recognized Market Operators (RMO) to establish and operate digital asset exchanges (DAX) in the country.

On January 15, 2019, the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 went into effect, requiring crypto trading platforms to submit an application for a license. It was followed by the issuance of the revised Guidelines on Recognized Markets on January 31 to introduce new requirements for DAX operators.

In its latest announcement, the SC said it has registered three DAX operators, including Luno Malaysia, Sinergy Technologies, and Tokenize Technology. The SC has given these new RMOs up to nine months to fully comply with all regulatory requirements.

According to the regulator, operating a crypto trading platform without without a license is an offense under securities laws and a person in breach may be liable to a fine or imprisonment term or both.

“DAX operators who have not been approved by the SC are required to cease all activities immediately and return all monies and assets collected from investors,” the SC said.

The securities watchdog also advised members of the public to be mindful of the risks related to trading in digital assets, including risks of trading on exchanges that are not registered with the SC.