SC cautions Malaysians against using Crypto ATMs, says none authorised to operate here

SC cautions Malaysians against using Crypto ATMs, says none authorised to operate here
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KUALA LUMPUR (July 8): The Securities Commission Malaysia (SC) today cautioned the public against the use of Crypto Automatic Teller Machines (Crypto ATMs), saying it has not authorised any entity to operate such ATMs in Malaysia.

"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 wishes to alert the public that entities operating Crypto ATMs are considered to be operating a Digital Asset Exchange (DAX) which require registration with the SC. In this regard, the SC has not authorised any entity to operate Crypto ATMs," it said in a statement.

As such, it cautioned and reminded 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 added.

It further warned all unauthorised Crypto ATM operators to immediately cease their activities.

"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," it said.

Those wishing to verify if a digital asset operator is registered with the SC can check at https://www.sc.com.my/development/digital/digitalassets.

Investors are also 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.

These queries or complaints can be directed to 03-6204 8999 or e-mailed to: [email protected].