News by FinTech Malaysia: Vincent Fong
Following the finalisation of the regulatory framework for crypto exchanges in Malaysia, Securities Commission Malaysia announced today that it has registered 3 recognised market operators to establish and operate digital asset exchanges in Malaysia.
Also known to many as crypto exchanges, the operators who received conditional approval from the regulator are namely; Luno Malaysia Sdn Bhd, SINEGY Technologies (M) Sdn Bhd, and Tokenize Technology (M) Sdn Bhd. These 3 operators are given up to 9 months to fully comply with all regulatory requirements prior to receiving a full license.
David Low, Luno’s South East Asia General Manager, voiced support for the regulator, stating that regulation will ultimately bring clarity and protection to consumers. He also believes that the Malaysian government’s proactive regulation of the digital asset industry shows the significance they place on this sector.
Among the 3 operators, Penang-based SINEGY is the only homegrown startup, Chan Wei Chi, Business Development Head of Sinegy echoed David’s support for the regulation and added that this will enable consumers to invest in a much safer market environment.
Tokenize’s CEO, Qu Yi, shared with Fintech News Malaysia that with this conditional approval, they are looking forward to open trading to the 10,000 users on their waiting list.
Crypto exchanges that are not approved by the SC are required to cease all activities immediately and return all monies and assets collected from investors, this includes the other 19 exchanges who previously applied for licensing from the regulator.
Similarly, all cryptocurrencies and digital asset will require prior approval from Securities Commission Malaysia before it can be traded on any exchanges. At the time of writing there are no official statement from the regulator indicating approval for any digital assets.
In a media statement by Securities Commission Malaysia, they reiterated Finance Minister Lim Guan Eng’s previous statement that operating unlicensed crypto exchange could lead to RM 10 Million fine and 10 years jail time, or both.
The regulator also reminded the public be mindful of the risk of trading digital assets, including the risk of trading on exchanges that are not registered with Securities Commission Malaysia.
To verify whether a crypto exchange is licensed to operate, members of the public can refer to the following link.