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 known as »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 associated activities, the minister explained.

Following Lim’s announcement, the Securities Commission Malaysia confirmed that it »will put in place guidelines to govern trading and offering of digital assets. » The regulator noted that »the offering of digital assets, as well as 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 healthy of issuers and exchange operators, disclosure standards and practices in customer asset protection, trading principles and price discovery. Those dealing in digital assets will be required 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 said 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. » 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 person offering an ICO or running a digital asset exchange without SC’s approval might 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 resources, as well as… inherent blockchain technologies, as having the potential to bring about innovation in both old and new sectors, » Lim further clarified, elaborating:

In particular, we believe assets have a role to play as an alternate fundraising avenue for new companies and entrepreneurs, and an alternate asset class for investors.

Meanwhile, the Bank Negara Malaysia has repeatedly stated that cryptocurrencies aren’t legal tender in its countrybest bitcoin casino for us players bitcoin casino free play The central bank has advised the public to carefully evaluate the risks.

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

What do you think of Malaysia starting 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