Hello, this is currently untrue at the time of writing.

This may change in the future but for the time being Luno Malaysia does not currently freeze any users funds for the reasons you mentioned above.

However, we do strongly encourage all our users to declare the information required when receiving/sending crypto.
This is a requirement under the Travel Rule which is being instituted by our regulators.

Should anything change in the future, we will inform our customers and do join our Facebook group Luno Malaysia Community (Official)
as I post a lot of updates there, and you can ask questions too