FARAH ADILLA
KUALA LUMPUR: The Securities Commission (SC) has today cautioned the public to be wary of individuals or entities exploiting Covid-19 to entrap them into investing in illegal investment schemes.
The SC also warned against investing in unauthorised digital asset exchanges (DAX) operating in Malaysia, following an increase in the number of queries and complaints received by it.
The commission said it had added 12 companies operating without licence or authorisation under its watch-list.
"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 Recognised Market Operators (RMOs) that are registered and authorised by the SC," it said in a statement.
The SC said there are three registered RMOs for DAX namely Luno Malaysia Sdn Bhd, SINEGY Technologies (M) Sdn Bhd and Tokenize Technology (M) Sdn Bhd.
No other online platforms are presently permitted by the SC to establish and operate a DAX in Malaysia.
The SC warned all unauthorised DAX operators in the country to immediately cease its activities.
If a person is convicted, he may be liable to a fine not exceeding RM10 million or imprisonment for a term not exceeding 10 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 emails offering investment advise and opportunities, especially those that offers high returns with little or no risks.