Malaysia Approves 3 Crypto Exchanges; Others Told to Shutdown

Wilfred Michael 

Wilfred Michael

News reporter

10 June 2019,
Malaysia Approves 3 Crypto Exchanges; Others Told to Shutdown

With efforts to regulate cryptocurrency trading platforms intensifying in various countries, the Securities Commission Malaysia (SCM) has made a bold move, following its earlier issuance of requirements for businesses providing such services within its jurisdiction.

The SCM this month updated its list of Recognized Market Operators (RMOs) to include three crypto exchanges, and thus, mark the end of a ‘transitional period’ during which the regulators required that trading platforms register with them or risk punishment.

The three crypto trading platforms now licensed by the Malaysian securities watchdog include;

  • Luno Malaysia

  • SINEGY Technologies (M)

  • Tokenize Technology

The updated list of recognized market operators on the regulators’ website noted that the approved platforms would still have a nine-month grace to reach full regulatory compliance, although it also recommended that members of the public could deal with them.

Meanwhile, the SCM ordered that unlicensed crypto exchanges, numbering 19 should cease all activities immediately and return all monies and assets collected from investors. Failure to do so according to the regulations issued earlier by the SCM could see operators of the exchanges land imprisonment, a fine or both in penalties.

As noted earlier, Malaysia’s decision to award a license to only three exchanges aligns with the ongoing attempt by regulators in different countries to provide guidance for crypto asset trading platforms and the industry at large.

In the previous month, for instance, reported such regulatory efforts by the Bahamas, Australia, and Egypt.

On a global scale, the International Organization of Securities Commissions (IOSCO) last week released recommendations for countries looking to regulate crypto-asset trading platforms. Those recommendations were subsequently thumbed up by G20 Finance Ministers and Central Bank Governors at their meeting over the weekend.

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