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 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.” The commission must comply with securities laws and also approves ICOs cryptocurrencies and their related activities, the minister explained.
Following Lim’s announcement, the Securities Commission Malaysia confirmed that it”will put in place guidelines to regulate trading and offering of digital assets.” The regulator noted that”the offering of electronic assets, along with its associated activities, will require authorisation from the SC and compliance with relevant securities laws and regulations,” elaborating:
The guidelines will among others, establish criteria for determining properness and fit of disclosure standards and exchange operators, issuers and practices in trading rules price discovery and customer asset protection. Those dealing in electronic 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.” 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 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 resources, 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 assets have a role to play as an alternate asset class for investors, and an alternative fundraising route for entrepreneurs and new companies.
Meanwhile, Bank Negara Malaysia has repeatedly said that cryptocurrencies are not legal tender in its own countrynew bitcoin casino no deposit bonus bitcoin casino games review The bank has advised the public to carefully assess the risks associated in dealing with them.
Bank Negara Malaysia has published a list of companies that have declared themselves as cryptocurrency exchanges or service providers, but emphasized that it has neither certified nor authorized these companies. 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.
Pictures courtesy of Shutterstock, the Malaysian government, and Reuters.
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Source: bitcoincasinoreview.info
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