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 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 relevant securities laws and also be accepted by the commission, the minister explained.
After Lim’s announcement, the Securities Commission Malaysia confirmed that it”will put in place guidelines to regulate offering and trading 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 relevant securities laws and regulations,” elaborating:
Criteria will be among others, established by the guidelines for determining healthy and properness of best practices and exchange operators, disclosure standards and issuers in trading rules, price discovery 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) rules, cyber security and business continuity measures and bitcoin casino best slots.
Furthermore, the commission said 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 operating 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… underlying blockchain technology, as having the potential to bring about innovation in both old and new industries,” Lim further described, elaborating:
Specifically, we consider assets have a role to play as an alternate fundraising route for entrepreneurs and new companies, and an asset class for investors.
Bank Negara Malaysia has repeatedly said that cryptocurrencies are not legal tender in its countrybitcoincasino site The bank has advised the public to evaluate the risks associated in dealing with them.
Bank Negara Malaysia has released a list of organizations that have announced themselves as cryptocurrency exchanges or service providers, but emphasized that it has neither certified nor authorized these companies. 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 starting to govern cryptocurrencies and ICOs? Let us know in the comments section below.
Images courtesy of Shutterstock, the Malaysian authorities, and Reuters.
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