Malaysian Finance Minister Lim Guan Eng said on Monday that his country»will regulate initial coin offerings (ICOs) and the trade of cryptocurrencies,» Reuters reported, adding:
An arrangement to recognize digital currencies and electronic tokens as securities will come into force on Jan. 15, under the regulation of the Securities Commission Malaysia [SC].
The order is called»the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019.» Cryptocurrencies, ICOs and their activities must comply with securities laws and also be approved by the commission, the minister explained.
Following 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 digital assets, as well as its related activities, will require authorisation from the SC and compliance with applicable securities laws and regulations,» elaborating:
Criteria will be among others, established by the guidelines for determining fit and properness of issuers and exchange operators, disclosure standards and practices in trading principles price discovery and client asset protection. Those dealing in digital assets will be asked to put in place anti-money laundering and counter-terrorism financing (AML / CFT) rules, cyber security and business continuity measures and bitcoin casino best slots.
What’s more, the commission stated that it»will enter into coordination arrangements» with the Bank Negara Malaysia, the country’s central bank, in order»to ensure compliance with laws and regulations under the purview of both regulators.» In addition, 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
The finance ministry»views digital assets, as well as… underlying blockchain technology, as having the potential to bring about innovation in both new and old sectors,» Lim further clarified, elaborating:
Specifically, we believe assets have a role to play as an alternative fundraising route for entrepreneurs and new businesses, and an asset class for investors.
Bank Negara Malaysia has stated that cryptocurrencies are not legal tender in its countrycloudbet rating The central bank has advised the public to thoroughly assess the risks associated in dealing with them.
Bank Negara Malaysia has released a list of companies that have announced themselves as service providers or cryptocurrency exchanges, but emphasized that it has neither licensed nor authorized these companies. Among companies on the list are Belfrics Malaysia, Bit Malay, Bitpoint Malaysia, Bit Trade Enterprise, Bong Technology, Bxm, Luno Malaysia, Openbit, Udax International, Upbit Malaysia, and Xbit Asia.
What do you think of Malaysia starting to govern cryptocurrencies and ICOs? Let us know in the comments section below.
Images courtesy of Shutterstock, the Malaysian government, and Reuters.
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