The Malaysian Securities Commission (SC) has issued a warning against the use of crypto ATMs in the country. The warning stated that crypto ATMs come under Digital Asset Exchange (DAX) and thus require a clearance license from the security commission to operate in the country. Still, the SC says it has not issued any such operating license.
Crypto ATMs are commonly used to buy digital currencies using cash and debit/credit card, and their popularity has soared in the past couple of years. The same is true in Malaysia, and there are multiple crypto ATMs installed around the country.
The SC says interacting with these ATMs could lead to fraud since they are not regulated or authorized to operate. The SC released a statement stating:
“As such, we wish to caution and remind members of the public not to deal with unlicensed or unauthorized 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 SC also warned the operators of these ATMs to cease their operations or face the ire of the law. Under the current securities law, the operators of these ATMs could face ten years of imprisonment or RM10 million in fine for operating without the DAX license.
The SC also released a website link that shows the names and list of verified operators from whom the users can purchase digital assets. The agency also asked the citizens to be more aware of these operators and also inform the agencies if they come across any such suspicious service providers or get any phone calls or emails.