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, 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.” The commission must comply with securities laws and also approves cryptocurrencies, ICOs and their associated activities, 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, along with 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 practices and exchange operators, disclosure standards and issuers in customer 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) rules, cyber security and business continuity measures and bitcoin casino best slots.
What’s more, 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 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”views digital assets, as well as… underlying blockchain technology, as having the potential to bring about innovation in both old and new industries,” Lim further clarified, elaborating:
Specifically, we consider digital assets have a role to play as an alternative fundraising avenue for entrepreneurs and new businesses, and an asset class for investors.
Bank Negara Malaysia has repeatedly said that cryptocurrencies aren’t legal tender in its countrybitcoin casino us promo code best bitcoin casino sites The central bank has advised the public to thoroughly assess the risks associated in dealing with them.
Bank Negara Malaysia has released a list of companies that have declared themselves as service providers or cryptocurrency exchanges, but emphasized that it has neither licensed nor authorized these businesses. 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 govern cryptocurrencies and ICOs? Let us know in the comments section below.
Pictures courtesy of Shutterstock, the Malaysian authorities, and Reuters.
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Source: bitcoincasinoreview.info
