noviembre 2, 2017 | Posted in:Blog

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 arrangement 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.» ICOs cryptocurrencies and their activities must comply with securities laws and also 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 digital assets, as well as 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 issuers and exchange operators, disclosure standards and best practices in customer asset protection, trading principles and price discovery. Those dealing in digital assets will be required 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.

What’s more, the commission said 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 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»viewpoints digital assets, as well as… underlying blockchain technology, as having the potential to bring about innovation in both new and old sectors,» Lim further described, elaborating:

Specifically, we believe assets have a role to play as an alternate fundraising route for new businesses and entrepreneurs, and an alternate asset class for investors.

Bank Negara Malaysia has stated that cryptocurrencies are not legal tender in its country777coin site The central bank has advised the public to evaluate the risks.

Bank Negara Malaysia has published a list of companies that have announced themselves as cryptocurrency exchanges or service providers, 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 govern cryptocurrencies and ICOs? Let us know in the comments section below.

Images courtesy of Shutterstock, the Malaysian government, and Reuters.

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Source: bitcoincasinoreview.net

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