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 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 called”the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019.” ICOs cryptocurrencies and their activities must comply with applicable securities laws and be approved by the commission, the minister explained.
After Lim’s announcement, 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 digital assets, as well as its related 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 properness and healthy of exchange operators and issuers, disclosure standards and practices that are best in trading rules, price discovery and client asset protection. Those dealing in digital assets will be asked 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 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”viewpoints digital assets, as well as… underlying blockchain technology, as having the potential to bring about innovation in both new and old industries,” Lim further described, elaborating:
Specifically, we consider assets have a role to play as an asset class for investors, and an alternate fundraising route for new companies and entrepreneurs.
Meanwhile, the Bank Negara Malaysia has said that cryptocurrencies aren’t legal tender in its countrymBit bitcoin casino The bank has advised the public to assess the risks.
Bank Negara Malaysia has published a list of organizations that have announced themselves as cryptocurrency exchanges or service providers, but emphasized that it has neither certified 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 beginning to govern cryptocurrencies and ICOs? Tell us in the comments section below.
Images courtesy of Shutterstock, the Malaysian government, and Reuters.
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Source: bitcoincasinoreview.info
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