Sc Issues Cease And Desist Order To Decentralised Cryptocurrency Exchange

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The Securities Commission says it will also seek assistance to block RimauSwap’s website. (Reuters pic)KUALA LUMPUR: The Securities Commission Malaysia (SC) has issued a cease and desist order to RimauSwap for operating a decentralised exchange (DEX) without authorisation from the commission.
SC said the action was taken following information received from the public.
“SC will also seek the assistance of the Malaysian Communications and Multimedia Commission (MCMC) to block RimauSwap’s website. Additionally, RimauSwap has been placed on the SC’s Investor Alert List,” it said in a statement today.
According to the commission, the DEX is a peer-to-peer exchange that allows individuals to swap digital assets directly with one another without an intermediary.
Transactions in these exchanges are operated through an automatic protocol mechanism known as smart contracts.
RimauSwap had previously claimed that it is an ambitious effort to build the first-ever Malaysian decentralised cryptocurrency exchange.
“The SC has not authorised any DEX operators in Malaysia. Hence, members of the public are reminded not to deal with unregistered entities operating a DEX in Malaysia,” the SC warned, and reminded all unregistered DEX operators in Malaysia to immediately cease their activities.
“Operating a DEX without having registered with the SC is an offence under the Malaysian securities laws.
“Entities who are interested in operating a DEX in Malaysia should apply to be registered as a Recognised Market Operator (RMO) with the SC,” it said.
In addition, the SC urged investors to only trade with RMOs that are registered with the SC, and to refer to the SC’s website for a list of registered RMOs.
The SC also said that investors who trade with unlicenced or unregistered entities or individuals are not protected under Malaysian securities laws, and are exposed to risks, such as fraud and money laundering.
“The public are also urged to report to the SC if they come across suspicious activities, websites, and investment opportunities, especially those that offer high returns with little or no risks.
“Queries or complaints can be made to the SC’s consumers and investors department at tel: 03-6204 8999 or e-mail: [email protected],” it added. - FMT

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