Malaysia Securities Commission Gives Three Crypto Exchange Green Light

Malaysia Securities Commission has granted permission for three crypto exchanges giving them nine months to achieve compliance with the regulatory standards. More information about SC’s decision we read in our coming altcoin news.

The country has been very strict with the regulation of crypto exchanges in the past. The three exchanges are now the first and only exchanges registered to legally operate in the country with the SC’s permission. The three exchanges include Sinegy Technologies, Tokenize Technology, and Luno Malaysia.

Currently, Malaysia is one of the very few South East Asian countries that don’t have a clear and defined stance on cryptocurrency and blockchain technology. The crypto community and crypto enthusiast are not sure when a decision will be made so people are afraid of using crypto since they are uncertain whether it is legal or not.

The Federal Territories Minister Of Malaysia Khalid Abdul Samad was quoted saying in the local media outlet the Malay Mail that digital currencies are 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 Malaysia Securities Commission has a very strict and direct stance on crypto. The trading platforms which are not approved by the SC have to stop all activities and immediately return the assets collected from the investors. As the local report that we have in our latest cryptocurrency news reveals, 19 more crypto exchanges previously applied for licensing from the regulator and they still haven’t received their permission. The SC has ordered the crypto exchange platforms to cease operations effective from June 1.

The Malaysian securities commission also warned that digital assets will need prior approval before trading on any trading platform. Those who will still operate as unlicensed crypto exchanges, risk a $2.4 million fine and ten years of jail time.

The regulator also started providing information for crypto exchanges about clarifying the laws. This was followed by a framework that was meant to regulate crypto trading in the country. The initial service ordered the classified cryptocurrencies as securities which fall under the SC’s legal scope.