Finance Minister Lim Guan Eng has announced that the Securities Commission (SC) will be regulating all digital currencies and digital tokens.
This is in line with the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 that came into effect on 15 January. This law allows the Securities Commission Malaysia to regulate digital assets as prescribed securities.
That means all activities that revolve around digital currencies and tokens must first be authorised by the SC and must comply with its regulations.
From now on, anyone caught operating unauthorised initial coin offerings (ICOs) or digital asset exchanges can be jailed up to 10 years and slapped with an RM10 million fine.
“The Ministry of Finance 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 alternative asset class for investors,” Lim was quoted as saying.
“In this regard, the SC will put in place the relevant regulatory requirements for the issuance of initial coin offerings (ICO) and the trading of digital assets at digital asset exchanges in Malaysia,”
“This framework is expected to be launched by end-Q1 2019. Any person offering an ICO or operating a digital asset exchange without SC’s approval may be punished, on conviction, with imprisonment not exceeding 10 years and fine not exceeding RM10 million,” the Finance Minister noted.
[Source]
