Regulating as Securities
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 order 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.
After Lim’s announcement, the Securities Commission Malaysia verified that it”will put in place guidelines to regulate trading and offering of digital assets.” The regulator noted that”the offering of electronic assets, as well as its associated activities, will require authorisation from the SC and compliance with applicable securities laws and regulations,” elaborating:
The guidelines will among others, establish criteria for determining healthy and properness of exchange operators and issuers, disclosure standards and practices that are best in price discovery, trading rules and client asset protection. Those dealing in digital 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 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.” 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 running 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”views digital assets, as well as… underlying blockchain technologies, as having the potential to bring about innovation in both old and new sectors,” Lim further clarified, elaborating:
In particular, we consider assets have a role to play as an alternate asset class for investors, and an alternative fundraising avenue for new businesses and entrepreneurs.
Meanwhile, Bank Negara Malaysia has said that cryptocurrencies aren’t legal tender in its countrya href=”https://bitcoincasinoreview.net/cryptogames-review-rating”>Cryptogames sign up The bank has advised the public to thoroughly assess the risks.
Bank Negara Malaysia has released a list of organizations that have announced themselves as service providers or cryptocurrency exchanges, but emphasized that it has neither licensed nor authorized these businesses. Are Belfrics Malaysia, Bitpoint Malaysia Bit Malay, 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.
Pictures courtesy of Shutterstock, the Malaysian government, and Reuters.
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