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 approves cryptocurrencies, ICOs and their activities, the minister explained.

Following Lim’s statement, the Securities Commission Malaysia confirmed that it »will put in place guidelines to govern offering and trading of digital assets. » The regulator noted that »the offering of electronic assets, as well as 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 properness and fit of best practices and exchange operators, disclosure standards and issuers in price discovery, trading principles 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 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 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 »viewpoints digital assets, as well as… underlying blockchain technology, as having the potential to bring about innovation in both new and old sectors, » Lim further described, elaborating:

In particular, we consider assets have a role to play as an asset class for investors, and an alternative fundraising avenue for entrepreneurs and new businesses.

Meanwhile, the Bank Negara Malaysia has stated that cryptocurrencies aren’t legal tender in its own countrycasino reviews gambit homepage casino extreme account registration The central bank has advised the public to thoroughly assess the risks associated in dealing with them.

Bank Negara Malaysia has published a list of companies that have declared themselves as service providers or exchanges, but emphasized that it has neither certified nor authorized these businesses. Among companies on the list are Belfrics Malaysia, Upbit Malaysia, Bitpoint Malaysia, Bit Trade Enterprise, Bong Technology, Bxm, Luno Malaysia, Openbit, Udax International, Bit Malay, 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.info