The three become the first digital assets exchanges to be recognized by the Malaysian watchdog. However, their registration is dependent on their ability to comply with all the market regulations in the next nine months, SC stated.
The commission’s decision comes following the coming into force of new crypto friendly regulations in the Southeast Asian country, famous for its sandy beaches. The Capital Markets and Services Order 2019 expanded the commissions mandate to include oversight over digital currencies and securities tokens. Subsequently, the country also released the revised Guidelines on Recognized Markets shortly after, introducing new requirements for all the digital assets exchanges (DAX) operators in the country.
The regulator also warned all the other crypto exchanges in the country who haven’t been registered to cease all operations and refund customer funds. Operating an exchange without authorization from the SC is an offence under securities laws, the press release stated. Those found guilty of the offence face a fine, imprisonment, or both.
The regulator informed members of the public about the risks involved in crypto trading, especially if the exchange they use isn’t recognized by the commission.
Malaysia revised its securities laws this year to accommodate the ever-expanding crypto market. The Guidelines on Recognized markets, which have existed since 2015 were amended to contain provisions that protect crypto traders in the country. The amendments include a requirement for crypto exchanges to register with the regulator before commencing any operations in the country.
The exchanges must also “inform the SC of the occurrence of any event which would trigger its business continuity plan.” Moreover, crypto exchanges must seek the approval of the regulator before making any amendments to their existing ways of operations.
Under the new regulations, the SC also released a list of crypto exchanges in Malaysia that must cease operations immediately or risk legal action being taken against them. They include Belfrics, BLOKMY, B4U EXC, Bitpoint, Chako Global, Arbor Digital and AES Signatum.
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