SC Warns The Public Against Crypto ATMs

 

12 July 2020 – The Securities Commission Malaysia (SC) has issue an alert to the public against the usage of Crypto Automatic Teller Machines or Crypto ATMs as SC has not authorised any entity to operate it in the country. 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.

The SC has warned all unauthorised Crypto ATM operators in Malaysia to immediately cease their activities as operating Crypto ATMS are considered to be operating a Digital Asset Exchange (DAX) which require approval from the SC before the operation. Members of the public are not protected under the Malaysian securities laws if they deal with unlicensed or unauthorised entities and also are exposed to various risks, including fraud and money laundering.

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 RM10 million or imprisonment up to ten years or both.

Author: VSDaily Editor

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