Regulating as Securities
Malaysian Finance Minister Lim Guan Eng said on Monday that his country”will govern initial coin offerings (ICOs) and the trade of cryptocurrencies,” Reuters reported, including:
An order to recognize digital currencies and digital tokens as securities will come into force on Jan. 15, under the regulation of the Securities Commission Malaysia [SC].
The order is known as”the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019.” ICOs cryptocurrencies and their associated activities must comply with securities laws and be accepted by the commission, the minister explained.
After Lim’s announcement, the Securities Commission Malaysia verified that it”will put in place guidelines to govern trading and offering of digital assets.” The regulator noted that”the offering of electronic assets, along with its related activities, will require authorisation from the SC and compliance with relevant securities laws and regulations,” elaborating:
The guidelines will among others, establish criteria for determining healthy and properness of disclosure standards and exchange operators, issuers and practices in trading rules price discovery and customer asset protection. Those dealing in electronic assets will be required to put in place anti-money laundering and counter-terrorism financing (AML / CFT) principles, cyber security and business continuity measures and bitcoin casino best slots.
What’s more, the commission said that it”will enter into coordination arrangements” with the Bank Negara Malaysia, the country’s central bank, in order”to guarantee compliance with laws and regulations under the purview of both regulators.” Additionally, the regulator revealed that”The relevant regulatory framework is expected to be launched by end-Q1 2019.”
Lim was quoted by The Star as saying,”Any person offering an ICO or operating a digital asset exchange without SC’s approval may be penalized, on conviction, with imprisonment not exceeding 10 years and fine not exceeding RM10mil [~$2.44 million].”
Malaysian Finance Minister Lim Guan Eng
Ministry of Finance Sees Potential
The finance ministry”viewpoints digital assets, as well as… underlying blockchain technologies, as having the potential to bring about innovation in both old and new sectors,” Lim further described, elaborating:
Specifically, we believe digital assets have a role to play as an asset class for investors, and an alternate fundraising route for new companies and entrepreneurs.
Meanwhile, Bank Negara Malaysia has repeatedly stated that cryptocurrencies are not legal tender in its own countryTake note of the significance of a bitcoincasinoreview.net The central bank has advised the public to carefully assess the risks.
Bank Negara Malaysia has published a list of companies that have declared themselves as exchanges or service providers, but emphasized that it has neither certified nor authorized these businesses. Among companies on the list are Belfrics Malaysia, Upbit Malaysia, Bitpoint Malaysia, Bit Trade Enterprise, Bong Technology, Bxm, Luno Malaysia, Openbit, Udax International, Bit Malay, and Xbit Asia.
What do you think of Malaysia starting to regulate cryptocurrencies and ICOs? Let us know in the comments section below.
Images courtesy of Shutterstock, the Malaysian government, and Reuters.
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