Securities Commission and Bank Negara Working to Bring ICOs Under Securities Law
by Fintech News Malaysia December 6, 2018To implement the regulatory framework on digital assets—be it tokens or cryptocurrency—the Bank Negara (BNM) and the Securities Commission Malaysia (SC) will enter into coordination arrangements to ensure compliance with laws and regulations under the purview of both regulators.
The SC is currently working on regulations to bring digital assets within the remit of securities law, in a bid to promote fair and orderly trading and ensure investor protection. This effectively means that the SC will regulate issuances of digital assets via initial coin offerings (ICO) and the trading of digital assets at digital asset exchanges in Malaysia.
In addition, ICO issuers and digital asset exchanges are subject to the SC’s Guidelines on Prevention of Money Laundering and Terrorism Financing.
ICO issuers and digital asset exchanges that are involved in the issuance or dealing of digital assets with a payment function will also still need to comply with relevant BNM laws and regulations relating to payments and currency matters.
As of now, digital assets are still not legal tender in Malaysia as far as BNM is concerned, and the central bank advises the public to carefully evaluate risks associated in dealings with digital assets—stock advice that BNM often gives out regarding cryptocurrency and tokens at this juncture.
