Malaysia hits crypto payment firm Simplex with regulatory warning
Malaysia’s financial regulator has backlisted yet another group of cryptocurrency websites, citing their brands are not authorised to operate in the country.
Most notably, the Securities Commission (SC) said that the leading crypto payment gateway, Simplex and its associated brands are carrying out unlicensed capital market activities.
Israeli-based Simplex combines crypto payment processing with fraud prevention technology. It also enables merchants to accept diverse payment methods, including credit card deposits and purchases, with zero exposure to chargeback risk. The service caters to different market participants including exchanges, brokers, wallet and liquidity providers.
Founded in 2014, Simplex has already signed partnerships with leading crypto exchanges, including Binance and Huobi, among others, to enable users to buy cryptocurrencies with their credit cards. Nuvei acquired Simplex earlier last year in a $250 million cash deal.
Simplex often charges 3.5 percent of a transaction, with a $10 minimum purchase amount. The company also applies various restrictions, including a $20,000 maximum for daily transactions when using a credit or debit card, as well as a $50,000 maximum monthly limit.
The updated list also includes names of fraudulent clone platforms that have been posing as well-known, regulated platforms around the world, including a bogus website called Binance Futures Investment.
The watchdog has also sounded an alarm over yet another fraudulent firm, but this time is shedding light on a mix of a cryptocurrency and investment scams. The SC, as part of its intensified market supervision, said that a company called Lati Famanah is an unlicensed trading provider, cautioning all retail investors about the risks of dealing with it.
The watchdog advises its citizens not to make use of such services nor to make any investment with companies or individuals that are not approved or licensed by the SC.
Anyone who engages in regulated activities without a valid license or registration from the SC is committing an offence under the Capital Markets and Services Act 2007. If convicted, they may be punished with imprisonment of up to ten years and fined.