In a joint-statement issued by Bank Negara Malaysia (BNM) and Securities Commission Malaysia (SC) today, the regulators stated that Initial Coin Offering (ICO) schemes may fall under the jurisdiction of the regulators.

Both the regulators warned ICO issuers that carrying out regulated activities without prior approval from the authorities is considered an offense. The activities include but is not limited to; fund-raising, fund management, capital market products, deposit taking, foreign exchange administration, remittances and the exchange of digital token for payments.

This statement follows Securities Commission Malaysia’s recent move to issue a cease and desist to CopyCashCoin. Bank Negara Malaysia and Securities Commission Malaysia maintain that consumers should be cautious before participating in ICO and advised the public to advised to refer to the list of institutions that are licensed or approved to carry out regulated activities under the laws administered by Securities Commission Malaysia and Bank Negara Malaysia.