noviembre 7, 2017 | Posted in:Blog
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 arrangement 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.» Cryptocurrencies, ICOs and their associated activities must comply with securities laws and be approved by the commission, the minister explained.
Following 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, 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 fit and properness of exchange operators and issuers, disclosure standards and best practices in trading principles price discovery and customer 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 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 individual offering an ICO or operating 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»viewpoints digital resources, as well as… inherent blockchain technology, as having the potential to bring about innovation in both old and new sectors,» Lim further described, elaborating:
Specifically, we believe assets have a role to play as an alternate fundraising route for entrepreneurs and new companies, and an alternate asset class for investors.
Bank Negara Malaysia has said that cryptocurrencies are not legal tender in its countrycreate free bitcoin casino bitcoin casino no deposit bonus usa The bank has advised the public to carefully evaluate the risks.
Bank Negara Malaysia has released a list of organizations that have declared themselves as service providers or cryptocurrency exchanges, but emphasized that it has neither licensed 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 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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