Blockchain/Bitcoin

Budget 2019: Securities Commission Malaysia to Regulate ICOs in 2019

by Fintech News Malaysia November 2, 2018

During the Budget 2019 speech, YB Lim Guan Eng, Finance Minister, stated that Securities Commission Malaysia will be coming up with a regulatory framework for cryptocurrencies, though not much details beyond the fact that it will be gazetted in 2019.

Seeking clarification we reached out to Securities Commission Malaysia to get further details on the matter.

In statement issued to Fintech News Malaysia, Securities Commission Malaysia confirms that they are indeed developing a regulatory framework for both ICOs and digital asset exchanges which will come into effect in the 1st quarter of 2019.

The statement also indicates that the regulator also acknowledges ICOs as one the methods to broaden retail participation and could potentially stimulate more innovative market-based financing options.

However the regulator also emphasized that one of the key goals of the framework is ensure a fair and orderly development for this nascent market.

This is a step in the right direction for Malaysia as many within the industry feel there is a lack of clarity when it comes to ICOs in Malaysia, with most statements coming for the regulators taking a caveat emptor stance.

Currently the only regulatory framework for cryptocurrencies in Malaysia are centered around anti-money laundering and counter financing of terrorism.

The Fintech News Malaysia team will be updating on our readers on the ICO and digital assets framework once more details are made available to us.