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, adding:
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 called”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 ICOs cryptocurrencies and their associated activities, the minister explained.
After Lim’s statement, the Securities Commission Malaysia verified 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 applicable securities laws and regulations,” elaborating:
The guidelines will among others, establish criteria for determining fit and properness of issuers and exchange operators, disclosure standards and best practices in trading principles, price discovery and client asset protection. Those dealing in electronic 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 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 person 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”views digital resources, as well as… underlying blockchain technologies, as having the potential to bring about innovation in both new and old sectors,” Lim further described, elaborating:
In particular, we consider assets have a role to play as an alternate fundraising avenue for new businesses and entrepreneurs, and an asset class for investors.
Bank Negara Malaysia has said that cryptocurrencies are not legal tender in its own countrybetchain rating The bank has advised the public to evaluate the risks.
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. 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 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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Source: bitcoincasinoreview.net
