Securities Commission Puts KuCoin On Its Latest Investor Alert List

Alex Cheong Pui Yin

5th October 2021 - 2 min read

The Securities Commission of Malaysia (SC) has included cryptocurrency exchange KuCoin in its latest Investor Alert List (dated 4 October 2021), alongside several other entities.

According to the regulatory body, KuCoin was placed in the list for “operating a digital asset exchange (DAX) without registration”. To note, any DAX that wishes to operate within Malaysia must first obtain a licence from the SC to become a registered recognised market operator (RMO). As of now, there are only four RMOs that have been approved by the SC: Luno, MX Global, SINEGY Technologies, and Tokenize.

KuCoin’s inclusion in the list comes just a few months after the SC’s move to take enforcement actions against international DAX giant Binance back in July 2021. The cryptocurrency exchange – which had been on the SC’s Investor Alert List for a year by then (since July 2020) – was asked to disable its website and mobile app, cease all marketing activities, and restrict access to its Telegram group.

KuCoin has been operating for four years, and like other global digital asset exchanges, it has its own token, KuCoin Token (KCS) powering its network, as well as a wide range of tradeable cryptocurrency tokens, some of which are not offered on other exchanges. Its fees are also competitive, making it relatively popular with investors.

Prior to this latest alert by the SC, however, KuCoin has also had previous run-ins with several other governing or legal bodies. The High Court of Singapore was reported to have issued a temporary injunction against KuCoin to bar it from moving its assets back in 2020. More recently, the Ontario Securities Commission also said that it is taking action against a number of companies linked to KuCoin.

Aside from KuCoin, the SC’s updated Investor Alert List also include other new names such as Impiana Capital Financing Solutions (ICFS Group) and Robot Trading Sdn Bhd.

(Source: Securities Commission of Malaysia [1, 2])

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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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