The Securities Commission Malaysia (SCM) has stepped up efforts to regulate cryptocurrency trading platforms operating within its jurisdiction.
Earlier this month, three digital exchanges received approval by the Commission, ultimately bringing to an end a “transitional period” during which all existing digital operators were asked to obtain regulatory approval or shut down.
The SCM had warned in its Guidelines on Recognized Market (GRM) released in March that all cryptocurrency trading platforms must get registered or be punished by law.
Now, in compliance with the new rules, the three exchanges that obtained an operating license according to the regulator’s list are;
- Tokenize Technology (M) Sdn Bhd.
- Luno Malaysia Sdn Bhd,
- SINEGY Technologies (M) Sdn Bhd
While the Commission recommended that the public could patronize the shortlisted exchanges, it also revealed that the three digital platforms have nine months to reach full regulatory compliance.
Malaysian Crypto Exchanges Ordered to Cease Operations
On the other hand, 19 crypto exchange platforms that are yet to attempt compliance with the SCM’s regulatory exercise were ordered to shut down all trading activities and refund all monies and assets collected from investors.
Additionally, the ruling goes into effect immediately while a failure to comply could attract a fine, imprisonment, or both penalties according to the regulatory body.
This move by the Malaysian government blends well with current global movement by regulatory bodies of other countries to set up guidance for crypto asset trading exchanges and widely the blockchain industry.