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Remitano’s Legal
Status in Malaysia
Overview
● Remitano is the platform that bridge the fiat-crypto divide by providing the most trusted and secure platform for
buying and selling crypto. The main services that Remitano currently offers are P2P trading, crypto swapping
and payment gateway.
● April 2,2021 Securities Commission of Malaysia has updated the Administrative Actions in 2021, in which,
Remitano had been reprimanded for breaching of section 354(1)(a) of the Capital Markets and Services Act
2007 (“CMSA”) read together with section 7(1) of the CMSA and Order 3(1) of the Capital Market and Services
(Prescription of Securities) (Digital Currency and Digital Token) Order 2019 (“CMSA Order”).
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● April 13, 2021, Securities Commission of Malaysia (“the SC”) issued the statement that they had reprimanded
Remitano for operating a digital asset exchange in Malaysia without authorisation from the SC.
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● After issuing the statement, the SC also worked with the Malaysian Communications and Multimedia
Commission (“the MCMC”) to block Remitano’s website from accessing from Malaysia's territory.
● Remitano has also been listed in the SC’s Investor Alert list for Operating a recognized market without
authorization from the SC.
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Actual effect since the SC’s statement
● All of Remitano’s domain including:
[Link]
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has been banned from accessing from Malaysia’s territory since
March,31 2021.
● The Remitano’s mobile application has also been banned by Google
and Apple in Malaysia after the SC’s enforcement.
Approachment from Remitano
● On September 2021, Remitano had processed to approach the SC for cooperation and registration.
● On November 25th, 2021 the SC responded to Remitano’s request for registration. The written
response stated that “ the application period to submit an application to register as a DAX or an IEO
operator is currently closed and any opening is subject to the SC’s review of the market from time to
time.”
● Recently, Remitano has approached to connect with several registered DAX licensees for
cooperating, however, the cooperation faced many obstacles due to It was listed on the SC’s
Investor Alert.
● In the next step, Remitano would like to approach the Malaysian Communications and Multimedia
Commission to unblock the website from accessing.
Legal framework for establishing Crypto Exchange in Malaysia
● The Malaysian authorities typically consider cryptocurrencies to be securities and so tokens are
regulated under securities laws and overseen by the Malaysian Securities Commission (SCM) under
the authority of the Capital Markets and Services Act 2007.
● Malaysia regulates cryptocurrency exchanges under the Guidelines on Prevention of Money
Laundering and Terrorism Financing for Capital Market Intermediaries 2014. Those rules were
amended by the Capital Markets and Services (Prescription of Securities) (Digital Currency and
Digital Token) Order 2019, and the Guidelines on Recognized Markets 2019.
● Cryptocurrency exchanges in Malaysia are required to register with the SCM in order to operate. The
registration process involves a set of criteria, including requirements for exchanges to demonstrate
the fitness of their senior management employees, and their ability to manage the AML/CFT risks
associated with their business.
Notable Regulations on Establishing Digital Asset Trading
● The trading of digital assets in Malaysia would be legally permitted if it is conducted through an
SC-approved DAX platform. Pursuant to Sections 7(1) and 34(1) of the CMSA 2007, a DAX operator
must be registered as Recognized Market Operators (“RMO”) with the SC before it can lawfully
function as a DAX operator in Malaysia.
● To be eligible as a DAX operator, the applicant must be a Malaysia-incorporated entity and has a
minimum paid-up capital of RM5 million.
● The DAX operator shall be restricted on providing financial assistance to investors/customers for the
purposes of purchasing cryptocurrency/digital assets
● Licensed DAX operator must establish a robust risk management system to ensure a high degree of
security and reliability.
● DAX operator must establish one or more trust account in a licensed financial institution in Malaysia.
● No DAX Operator shall facilitate the trading of any Digital Asset unless the SC has approved the
trading of the said Digital Asset
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Thanks for considering
