KUALA LUMPUR: The Securities Commission Malaysia (SC) has issued a cease and desist order to RimauSwap for operating a cecentralised exchange (DEX) without authorisation from the SC.

It said in a statement posted on its website that it was acting fllowing information received from the public.

The 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.

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.

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 also warns all unregistered DEX operators in Malaysia to immediately cease their activities.

“Operating a DEX without registration 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 Recognized Market Operator (RMO) with the SC.

“In addition, the SC urges 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,” it said.

The SC said investors who trade with unlicensed or unregistered entities or individuals are not protected under Malaysian securities laws, and are exposed to risks, such as fraud and money laundering.

It also urged the public 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: aduan@seccom.com.my.

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