KUALA LUMPUR (Jan 22): The Securities Commission Malaysia (SC) has warned the public against investing in or dealing with Hap2py, an unauthorised peer-to-peer (P2P) financing platform in Malaysia.

In a statement on Monday, the regulator said that to date, it has initiated several actions and interventions against Hap2py, including placing it on the SC’s Investor Alert List, blocking its multiple websites and issuing a cease-and-desist notice.

“Despite these efforts, the SC notes that Hap2py continues to solicit Malaysian investors through various means, including via variations of its website1 as well as social media advertisements.

“In addition, there have been numerous queries and complaints against this entity from the public,” it said.

The SC said it will not hesitate to take further and/or any other appropriate action, including enforcement action as it views this non-compliance seriously.

It added that Hap2py is not an authorised Recognised Market Operator (RMO).

It is currently operating a P2P platform without first obtaining the SC’s authorisation as an RMO, which is an offence under Section 7(1) (e) read together with Section 34 of the Capital Market Services Act 2007.

“If convicted, the person or entity may be liable to a fine not exceeding RM10 million or imprisonment for a term not exceeding ten years, or both.

“As such, the SC strongly urges investors and those seeking to raise funds to not deal with or invest through Hap2py,” it said.

The SC reiterated the importance of only trading with RMOs that are registered and authorised by the SC.

This is as registered RMOs have undergone regulatory scrutiny and are required to strictly adhere to guidelines so that investors are protected under Malaysia’s securities laws.