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 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.
After Lim’s statement, 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, 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 healthy and properness of best practices and exchange operators, disclosure standards and issuers in client asset protection, trading principles and price discovery. Those dealing in digital 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.
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 ensure 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 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 sectors,” Lim further described, elaborating:
In particular, we believe assets have a role to play as an alternative fundraising avenue for new businesses and entrepreneurs, and an alternate asset class for investors.
Meanwhile, the Bank Negara Malaysia has stated that cryptocurrencies aren’t legal tender in its own countrystrategy for bitcoin casino ignition casino bitcoin bonus The bank has advised the public to carefully assess the risks associated in dealing with them.
Bank Negara Malaysia has released a list of companies that have declared themselves as cryptocurrency exchanges or service providers, but emphasized that it has neither licensed nor authorized these businesses. Among companies on the list are Belfrics Malaysia, Bitpoint Malaysia Bit Malay, Bit Trade Enterprise, Bong Technology, Bxm, Luno Malaysia, Openbit, Udax International, Upbit Malaysia, 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
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