SC advises investors to be aware of Covid-19 investment scams

The SC advising the public to be aware of any Covid- 19 investment scams.

KUCHING, Apr 24: 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 capital market regulator 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 in a press statement issued in Kuala Lumpur said it 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.

It explained that 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.

Therefore, the SC reminds investors to only trade with recognised market operators that are registered and authorised by the SC.


Currently, the SC revealed that there are three registered recognised 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, the SC emphasised that there are no other online platforms that are presently permitted by the SC to establish and operate a DAX in Malaysia.

Furthermore, the SC also cautions all unauthorised DAX operators in Malaysia to immediately cease its activities.

It explained that those 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 RM10 million ringgit or imprisonment for a term not exceeding 10 years or both.

The SC asserted that 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.

Moreover, the SC said the public should alert the regulator 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.

It pointed out that queries or complaints can be made to the SC at 03-6204 8999 or by electronic mail to aduan@seccom.com.my.—DayakDaily