Malaysia Will Regulate Cryptocurrencies
After months of hesitation, Malaysian cryptocurrency regulation will enter into force. According to a Monday report, the changes come into effect on Tuesday.
It took over a year to come up with new rules concerning digital currencies. At the end of 2017, we reported that Bank Negara Malaysia had published the draft regulations for cryptocurrency exchanges that exist in that country.
Cryptocurrency and ICO regulations
According to report from Reuters, the Asian country will regulate Initial Coin Offerings (ICOs) and the trade of cryptocurrencies.
Lim Guan Eng, the Malaysian financial minister, reportedly said on Monday that the Capital Markets and Services Order 2019 would become effective on January 15th.
The politician also said that the legal framework would be in place by the end of the first quarter of this year. Guam Eng wants to put in place “the relevant regulatory requirements for the issuance of ICOs and the trading of digital assets at digital asset exchanges in Malaysia.”
The new regulation clarifies what digital assets really are. According to the Malaysian government, cryptocurrencies and tokens are securities. Thanks to that, virtual money is covered by the Securities Commission’s (SC) authority.
According to local news outlet The Star, Lim said:
“The Ministry of Finance (MOF) views digital assets, as well as its underlying blockchain technologies, as having the potential to bring about innovation in both old and new industries. In particular, we believe digital assets have a role to play as an alternative fundraising avenue for entrepreneurs and new businesses, and an alternate asset class for investors.”
The Ministry also states that any person operating digital asset exchange or offering an ICO without commission’s approval, will face penalties. The authorities say that the punishment will be as high as 10 years in prison and up to 10 million RM (almost $2.5 million).
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