SC cautions investors on usage of Crypto ATMs

The SC said a Crypto ATM is a machine that allows individuals to buy and/or sell digital assets via cash, debit or credit cards or e-wallets. — Picture from Twitter/SCMalaysia
The SC said a Crypto ATM is a machine that allows individuals to buy and/or sell digital assets via cash, debit or credit cards or e-wallets. — Picture from Twitter/SCMalaysia

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KUALA LUMPUR, July 8 — The Securities Commission Malaysia (SC) today cautioned the public against the usage of Crypto Automatic Teller Machines (Crypto ATMs).

In a statement today, the SC said a Crypto ATM is a machine that allows individuals to buy and/or sell digital assets via cash, debit or credit cards or e-wallets. These machines are installed at 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 requires registration with the SC. In this regard, the SC has not authorised any entity to operate Crypto ATMs.

“We wish to caution and remind 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 said.

The SC also warned all unauthorised Crypto ATM operators in Malaysia 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 of up to 10 years or both,” it said.

The SC said members of the public may verify if a digital asset operator is registered with the SC at https://www.sc.com.my/development/digital/digitalassets.

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.

Queries or complaints can be made to the SC’s Consumers and Investors Department at 03-6204 8999 or e-mail: [email protected]. — Bernama

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