SC Issues Cease And Desist Order To Digital Exchange Operator RimauSwap

Alex Cheong Pui Yin

8th October 2021 - 2 min read

The Securities Commission Malaysia (SC) has issued a cease and desist order to decentralised exchange operator (DEX) RimauSwap for operating without authorisation. This came following information received from the public.

“SC will also seek the assistance of the Malaysian Communications and Multimedia Commission (MCMC) to block RimauSwap’s website. Additionally, RimauSwap has been placed on the SC’s Investor Alert List,” said the commission in a statement yesterday.

Within hours of the SC’s order yesterday, RimauSwap’s native token, RIMAU plunged over 50% from the $12 mark to a low of around $5.50. It has since recovered, and is trading at around $8 at the time of writing.

RimauSwap claims that it is the first of its kind to be made for the Malaysian community, operating on the Binance Smart Chain. “The underlying technology is based on PancakeSwap, which has proven to be secure and reliable,” RimauSwap stated in its whitepaper. Its goals were supposedly to “support sustainable environmental, social, and governance (ESG) for Malaysians benefitting Malaysians”, though there weren’t any specifics as to how it would be done.

In its latest statement, the SC also went on to emphasise that it has yet to grant authorisation to any DEX operators in Malaysia to date, and warned all unregistered DEX operators within the country to immediately cease their activities. It further said that entities that are interested in operating a DEX in the country should apply to be registered as a Recognised Market Operator (RMO) before doing so.

In return, RimauSwap issued its own official response in response to the cease and desist order. “RimauSwap is a decentralised exchange that exists as a series of smart contracts within the blockchain; and serving global communities. RimauSwap is unaware of any regulator that regulates DEXes, as DEXes have no associated legal entities. All activities happen within the blockchain. RimauSwap also does not transact with MYR fiat currency in anyway,” it said via its Telegram channel, adding that out of respect for the SC, it will remove any reference of Malaysia from all materials within the website with immediate effect.

(Sources: Securities Commission Malaysia, RimauSwap [Telegram])

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Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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