SC Advises Investors to be on Alert for Covid-19 Investment Scams and Unauthorised Digital Asset Exchanges
24 April 2020   |   Kuala Lumpur

The Securities Commission Malaysia (SC) today cautions the public to be on the alert for any individuals or entities that may try to take advantage of the latest developments of Covid-19 to entrap them into investing in illegal investment schemes.

The SC also warns the public against investing in unauthorised digital asset exchanges (DAX) operating in Malaysia, following an increase in the number of queries and complaints the regulator has received. The SC has added 12 companies operating without SC’s licence or authorisation under its watch-list or Investor Alert at http://www.sc.com.my/investor-alert.

Investors who deal with unlicensed or unauthorised entities or individuals are exposed to various risks, including fraud and money laundering, and may not have access to legal recourse in the event of a dispute. The SC reminds investors to only trade with Recognized Market Operators that are registered and authorised by the SC.

Currently, there are three registered Recognized Market Operators (RMOs) for DAX namely Luno Malaysia Sdn Bhd, SINEGY Technologies (M) Sdn Bhd and Tokenize Technology (M) Sdn Bhd. Apart from the three operators mentioned above, no other online platforms are presently permitted by the SC to establish and operate a DAX in Malaysia.

The SC also cautions all unauthorised DAX operators in Malaysia to immediately cease its activities. Operating a DAX without authorisation from the SC is an offence under securities laws and if a person is convicted, he may be liable to a fine not exceeding ten million ringgit or imprisonment for a term not exceeding ten years or both.

Members of the public may verify if a digital asset operator is registered with the SC at https://www.sc.com.my/development/digital/digitalassets. Additionally, they should alert the SC if they come across any suspicious websites as well as receive any unsolicited phone calls or e-mails offering investment advice and opportunities, especially those that offer high returns with little or no risks.

Queries or complaints can be made to the SC at tel: +603 6204 8999 or e-mail: [email protected].
SECURITIES COMMISSION MALAYSIA 
SC-World Bank-IOSCO Asia Pacific Hub Conference 2019: Enhancing Financial Inclusion through Islamic Finance and FinTech
(From left to right):
  1. Abayomi A. Alawode, Head of Islamic Finance, Finance, Competitiveness and Innovation, The World Bank Group
  2. Datuk Syed Zaid Albar, Chairman of the Securities Commission Malaysia (SC)
  3. Dr. Firas Raad, Country Manager for Malaysia, East Asia and Pacific, The World Bank Group 
  4. Datuk Zainal Izlan Zainal Abidin, Deputy Chief Executive of SC
GET IN TOUCH
HOTLINE: +603-6204 8000
related sites
© Copyright Securities Commission Malaysia   |   Contact Us   |  Disclaimer  |  The site is best viewed using Internet Explorer 11 and Google Chrome with mimimum resolution of 1280x1024
Ooops!
Generic Popup