As Originally Published on crowdfundinsider.com
The Securities Commission Malaysia (SC) has approved three digital asset exchanges as “Recognized Market Operators” (RMOs) to establish and operate digital asset exchanges (DAX) in Malaysia.
Malaysia is known for its support of Fintech innovation in general and recently updated online capital formation rules to boost utilization of investment crowdfunding.
The shift to digital assets is occurring globally as policymakers hash through how to best manage the fundamental change in financial services.
The SC updated their “Guidelines on Recognized Markets” to facilitate the trading of digital assets in January and augmented the rules this past March. At that same time, the SC required existing DAXs to submit an application for approval during a “transitional period” as the industry moved from unregulated to a compliant one.
The three newly registered DAX operators are as follows:
- Luno Malaysia Sdn Bhd
- SINEGY Technologies (M) Sdn Bhd
- Tokenize Technology (M) Sdn Bhd.
The SC added that it has given the three new RMOs up to nine months to fully comply with all regulatory requirements.
DAX operators who have not been approved by the SC are required to cease all activities immediately and return all monies and assets collected from investors.
The SC said that operating a DAX without regulatory approval is in breach of securities law and individuals may be liable for imprisonment, a fine or both.
The SC also cautioned the investing public of the risk intrinsic to digital assets – especially utilizing a non-registered exchange.