The Securities Commission Malaysia (SC) has urged caution over the public’s usage of Crypto Automatic Teller Machines (Crypto ATMs), within the region.
The machines allow individuals to engage in digital asset transactions via cash, debit/credit cards or e-wallets. They are installed in various locations in Malaysia, facilitating the exchange of different types of digital assets with fiat currency and vice versa.
The SC sought 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.
Issuing the update, Malaysia’s SC stated: “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.”
The Security Commission 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 up to ten years or both.