Malaysia has been strict with its regulation of cryptocurrency exchanges previously. These three are the first, and only, registered to operate in Malaysia legally.
The three exchanges registered are Luno Malaysia, Sinegy Technologies, and Tokenize Technology.
State of Cryptocurrency in Malaysia
Malaysia is currently one of the few South East Asian nations not to have a clear and defined stance on digital currency. Nobody is quite sure when a decision will be made, and nobody is sure if crypto is legal or not.
The Malaysian Federal Territories Minister Khalid Abdul Samad was reported saying, by the local media outlet, the Malay Mail, that cryptocurrencies were still under consideration.
“People have asked me if these (cryptocurrency and digital currency) currencies are legal or illegal. At the moment, the answer is neither legal nor illegal as the situation is still unclear,” he expressed noncommittally, adding “As the matter is not under my jurisdiction, I cannot push too much.”
The regulation coming from the regulator is strict and direct. Crypto exchanges not approved by the SC must cease all activities immediately and return all monies and assets collected from investors.
A local report reveals that 19 other exchanges previously applied for licensing from the regulator and have not been granted. The SC has ordered these crypto trading platforms to cease operations, effective June 1.
The SC has also warned that all cryptocurrencies assets will require prior approval before trading on any exchanges. Those who continue to operate unlicensed crypto exchange would risk to RM10 million fine ($2.4 million) and ten years of jail time, or both.
The initial service order classified cryptocurrencies as securities, causing them to fall under the SC’s legal scope.
Furthermore, the SC has published two papers asking the public for feedback on its proposed initial coin offering regulations.
While the overarching approach to cryptocurrencies in the South East Asian country is unclear, the approval of these three exchanges will help set standards for the Asian nation.