Securities Commission issues Cease and Desist Order to Decentralised Exchange Operator

The Securities Commission Malaysia (‘SC’) has issued a cease and desist order to RimauSwap (‘the Operator’) on 7 October 2021 for operating a Decentralised Exchange (‘DEX’) without authorisation from the SC.
A DEX is a peer-to-peer exchange that allows individuals to swap digital assets directly with one another without an intermediary. Transactions on a DEX are effected through an automatic protocol mechanism known as smart contracts.
The SC stated that it has not authorised any DEX operators in Malaysia and warned all unregistered DEX operators in Malaysia to immediately cease their activities as operating a DEX without being registered as a Recognised Market Operator (RMO) with the SC constitutes an offence under Malaysian securities laws.
The SC added that it has placed the Operator on its Investor Alert List and will seek the assistance of the Malaysian Communications and Multimedia Commission (MCMC) to block the Operator’s website.
The SC’s media release can be accessed here.
Alert by Lee Ai Hsian (Partner) and Tan Wei Liang (Associate) of the Fintech Practice of Skrine.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact