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.” The commission must comply with relevant securities laws and approves cryptocurrencies, ICOs and their associated activities, the minister explained.
Following Lim’s statement, 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 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 properness and healthy of practices and exchange operators, disclosure standards and issuers 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.
Furthermore, the commission stated 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 individual offering an ICO or running a digital asset exchange without SC’s approval might 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 resources, as well as… inherent blockchain technology, as having the potential to bring about innovation in both new and old industries,” Lim further described, elaborating:
Specifically, we consider digital assets have a role to play as an alternate asset class for investors, and an alternative fundraising route for entrepreneurs and new companies.
Bank Negara Malaysia has stated that cryptocurrencies are not legal tender in its own countryfree bonus no deposit bitcoin casino bitcoin live casino usa The bank has advised the public to carefully evaluate the risks associated in dealing with them.
Bank Negara Malaysia has published a list of organizations that have announced themselves as service providers or exchanges, but emphasized that it has neither certified nor authorized these businesses. 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 beginning to regulate cryptocurrencies and ICOs? Tell us in the comments section below.
Pictures courtesy of Shutterstock, the Malaysian authorities, and Reuters.
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