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Malaysian Security Commission cautions against crypto ATM usage

Malaysian Security commission

Despite already legalizing cryptocurrency, the Malaysian Security Commission sounded a note of caution against the usage of Crypto Automatic Teller Machines (Crypto ATMs).

With the digital asset becoming a mainstream currency, certain issues are catching the attention of the regulators like Initial Coin Offerings ICO’s, with many regulators warning against fraudulent ICO’s and the latest Crypto ATMs.

Malaysian Security Commission also revealed that it had not granted any entity the right to operate these machines, and the practice or operation of any crypto ATM is therefore illegal. The machines which enable individual transacts digital assets are installed in various locations in Malaysia, facilitating the exchange of different types of digital assets with fiat currency and vice versa.

Malaysian Security Commission, crypto ATMs

With crypto ATMs, a form of Digital Asset Exchange (DAX) it has to be registered with the Malaysian Security Commission, thus illegal if not; however, the regulators have not registered any, as mentioned earlier.

The regulators in the statement they released warned members of the public not to conduct business with unlicensed entities and individuals warning that victims would not be categorized under the protection of Malaysian securities laws.

The regulators also warned operators of such illegal ATMs to stop as it could attract a fine worth RM10 million being a violation of Malaysian security laws. The regulators, while concluding the statement, urged members of the public to alert the SC of any illegal digital asset operations.

Malaysia approves cryptos amidst rising crypto ATMs

The country recently approved crypto, licensing operators to work legally in the country. Tokenize Malaysia, a crypto exchange operator, got full approval from Securities Commission Malaysia to operate a digital asset exchange (DAX), as reported by local Malaysian media then.

However, regulators in the country say they are yet to license any crypto ATMs in the country as crypto ATMs in Malaysia continue to rise alongside crypto ATMs globally as it also continues to surge. Reportedly, Last month the total number of crypto ATM available globally rose to 8,000 compared to its 7,000 around March.

These machines are operational in 72 countries globally, with more than 5,000 of them in the United States.

 

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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