If you change more than Rm3k into foreign currency, it is BNM rules you have to give your ic for record keeping purposes.

AML guideline bnm

In the case of money changing and wholesale currency
transaction, reporting institutions shall:
(a) identify the customer or beneficial owner by sighting
and keying-in the identification information for
transactions involving an amount between RM3,000 to
RM10,000; and
(b) verify the identity of the customer or beneficial owner
by sighting, keying-in and making a copy of the
identification document for transactions involving an
amount above RM10,000.
In the case of remittance transaction, reporting institutions
shall:
(a) identify the customer or beneficial owner by sighting
and keying-in the identification information for
transactions involving any amount below RM3,000
If you have nothing to hide, then its ok lor. The IC reader part is just to verify if you are indeed the person in the ic. But I dont trust these money changers. They might use your ic for claiming big amounts later on. If you understand what im saying.

u worry / thinking too much leh...
it's normal SOP 

don't like / feel not safe..
go change at Banks.. u get "very good rate".. u know what I mean 

Yes, there is this exposure,... can't run away from this exposure-lar,....