PETALING JAYA: The Securities Commission (SC) has warned the public against investing or dealing with Hap2py, an unauthorised peer-to-peer (P2P) finacing platform in Malaysia.

       In a statement, the regulator said Hap2py was not an authorised recognised market operator (RMO).

       It was 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 RM10mil or imprisonment for a term not exceeding 10 years, or both.

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

       The SC said it had initiated several actions and interventions against Hap2py, including putting it on the SC’s Investor Alert List and blocking its multiple websites, as well as 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 website as well as social media advertisements.

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

       It said it would not hesitate to take further action including enforcement actions, as it viewed the non-compliance seriously.

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

       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.