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 known as”the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019.” The commission must comply with securities laws and approves ICOs cryptocurrencies and their activities, 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 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 best practices in customer asset protection, trading rules and price discovery. Those dealing in electronic assets will be asked 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.
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.” 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 individual offering an ICO or running a digital asset exchange without SC’s approval may be punished, 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 resources, 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 consider assets have a role to play as an asset class for investors, and an alternative fundraising route for entrepreneurs and new companies.
Bank Negara Malaysia has repeatedly said that cryptocurrencies aren’t legal tender in its countrycasino reviews gambit homepage casino extreme account registration The central bank has advised the public to carefully evaluate the risks.
Bank Negara Malaysia has published a list of organizations that have announced themselves as service providers or cryptocurrency exchanges, but emphasized that it has neither certified nor authorized these businesses. Among companies on the list are Belfrics Malaysia, Xbit Asia, Bitpoint Malaysia, Bit Trade Enterprise, Bong Technology, Bxm, Luno Malaysia, Openbit, Udax International, Upbit Malaysia, and Bit Malay.
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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