Crypto ATMs become illegal in Malaysia
Crypto ATMs become illegal in Malaysia
Regulation

Crypto ATMs become illegal in Malaysia

By Alfredo de Candia - 10 Jul 2020

Chevron down
Listen this article
download

In an announcement of a few days ago, the Securities Commission Malaysia (SC) announced that crypto ATMs are illegal in the territory due to the fact that those who want to install one must first obtain a special license which, for now, has not been assigned to any company.

“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.”

As such, the words of the committee, which stresses that all crypto ATMs in the country are not regulated and discourages their use, are unequivocal.

The commission makes it clear that these devices facilitate entry or exit from the crypto world, by buying and selling digital assets, which means that in Malaysia they are equivalent to DAXs (Digital Asset Exchanges) that require a license.

For these reasons and the fact that none of them has a valid license, the SC warns users that these devices do not have sufficient security measures and no one can guarantee who or what is on the other side.

In fact, these devices could be used for money laundering or to convert assets of dubious origin that would enter the hands of the unfortunate people who use these tools.

Besides this warning, another one is made to the companies that have installed these crypto ATMs: the order is to cease all activity and for those who decide to continue operating without a licence, there will be a very severe sanction of 10 million RM, equivalent to over 2 million euros, and a sentence of up to 10 years in prison.

The commission has set up an online portal to check whether the company that has installed a crypto ATM has a licence and asks to report any suspicious activity or website that engages in this type of activity.

 

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

We use cookies to make sure you can have the best experience on our site. If you continue to use this site we will assume that you are happy with it.