Malaysia Securities Commission Licenses 3 Crypto Exchanges, 19 Left in the Cold
The Malaysia Securities Commission have granted three licenses for ‘Digital Asset Exchanges’, or Crypto Markets. The three permits have been awarded to Luno Malaysia Sdn Bhd, SINEGY Technologies (M) Sdn Bhd and Tokenize Technology (M) Sdn Bhd.
Last week, the Malaysia Securities Commission finally confirmed that they were granting only three licenses for ‘Digital Asset Exchanges’ (DAX), otherwise known as Crypto Markets. The three permits have been awarded to Luno Malaysia Sdn Bhd, SINEGY Technologies (M) Sdn Bhd and Tokenize Technology (M) Sdn Bhd.
A total of nineteen other organisations had applied for the licenses by the beginning of March 2019. Prior to that, the Securities Commission had invited applications to become an official DAX in January of the same year.
Of the 42 digital exchanges operating at the start of the year, 20 chose to pull out of the market all together and return investor funds. Those who applied for licenses had to agree take on certain responsibilities.
One of the major markers of the licenses is that all trades must be ‘fiat to cryptocurrency’ exchanges, so there can be no trading of Bitcoin to Ethereum for example. The applicants also had to accept they would be liable for all anti-money laundering checks like any other investor.
The Final Three
The three companies that have been selected by the Securities Commission now have nine months to get their ducks in a row, so to speak. They are allowed to continue operations whilst organising their paperwork.
19 unsuccessful applicants have been warned that they must immediately cease operations. The penalty for continuing to trade is RM10million and up to 10 years in prison
Early regulation of the markets should allow for more innovation and for consumers to have more confidence in the trades.