The Securities Commission Malaysia issued a public warning earlier this week, urging consumers that firms operating cryptocurrency ATMs are technically operating digital asset exchanges, which first need to be authorized by the regulator. The regulator has yet to approve any cryptocurrency ATMs, which means all crypto ATMs that are currently operating have no regulatory oversight. The Securities Commission has warned people not to use these ATMs as it would expose them to a variety of financial risks, including money laundering and fraud.
Securities Commission asks crypto ATM operators to cease their activities immediately.
The Securities Commission Malaysia warned all unauthorized Crypto ATM operators that they need to cease their activities immediately. The penalties for operating an unauthorized crypto ATM include fines of up to RM10 million (US$2.35 million), with imprisonment of up to 10 years for anyone convicted of running an exchange without authorization. According to the financial regulator, people should verify whether crypto businesses are registered and authorized before engaging, with a full list of authorized companies available on the Securities Commission website. Investors are also being asked to report any suspicious operators to the regulator, including instances of unsolicited contact with people.
Malaysia’s Shariah Advisory Council permits crypto trading.
As reported earlier, the Securities Commission Malaysia’s Shariah Advisory Council n a landmark announcement, declared that digital assets trading was permissible in the country. The Malaysian Shariah Advisory Council is the authority that oversees the implementation of Islamic laws in the operation of Islamic Financial Institutions. Securities Commission chairman Datuk Syed Zaid Albar announced during an online conference Invest Malaysia that it is permissible to invest and trade in cryptocurrencies and tokens on registered crypto exchanges. This decision by the Shariah Advisory Council will bost the crypto trading in the country as more than 60% of the country’s population is Muslim.