Covid-19: Be alert for investment scams, unauthorised DAX

Written by TheMole

KUALA LUMPUR, April 24  2020: The Securities Commission (SC) has cautioned the public against those who may take advantage of the Covid-19 crisis to entrap them into investing in illegal schemes.

It said 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.

It also warned the public against investing in unauthorised digital asset exchanges (DAX) operating in Malaysia, following an increase in the number of queries and complaints it has received.

“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 today.

Currently, there are three registered RMOs for DAX, namely Luno Malaysia Sdn Bhd, SINEGY Technologies (M) Sdn Bhd and Tokenize Technology (M) Sdn Bhd.

Apart from these three operators, no other online platforms are presently permitted by the SC to establish and operate a DAX in Malaysia.

The SC has added 12 companies operating without SC’s licence or authorisation under its watchlist or Investor Alert at

It warned all unauthorised DAX operators in Malaysia to immediately cease their activities, adding that operation  without authorisation from the SC is an offence under securities laws .

Those convicted for committing the offense were liable to a fine not exceeding RM10 million ringgit or imprisonment for a term not exceeding 10 years or both.

The SC also called on the public to alert it 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.

Queries or complaints can be made to the SC at +603 6204 8999 or e-mail at



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