Malaysia launches digital currency campaign today
The Malaysian Finance Minister announced that rules on the regulation of digital currencies and initial currency support (ICO) as securities will enter into force today. Thus, digital currency providers and trading platforms will be required to obtain permission from the country’s JSC, which will work with the central bank to ensure compliance.
Organize digital currencies as securities
Malaysian Finance Minister Lim Guan Eng told Reuters on Monday that his country would organize its initial digital currency (ICO) operations and currency trading. He said in the statement:
“An order to recognize digital and primary currencies as securities will be issued on January 15, under the Securities Commission Regulation of Malaysia”
This is known as the Malaysian financial and securities market, the digital currency law and the digital primary currencies. Digital currencies, ICO operations and related activities must comply with the relevant securities laws and be approved by the Commission, the Minister explained.
After Lim’s statement, the Securities Commission of Malaysia confirmed that it would develop guidelines for regulating the support and circulation of digital assets. The regulator noted that support for digital assets, in addition to related activities, would require authorization from the SC9 Regulatory Committee and compliance with relevant securities laws and regulations,
“The guidelines will establish criteria for determining the suitability of issuers, platform operators, disclosure standards and best practices in price discovery, trading rules and protecting customer assets. It will require those dealing with digital assets to establish rules against money laundering and counter-terrorism (AML / CFT), Internet security measures and business continuity “
In addition, the Committee stated that it would enter into coordination arrangements with the Bank of Nigara Malaysia, the country’s central bank, in order to ensure compliance with laws and regulations within the competence of both regulators. In addition, the regulator revealed that the final regulatory framework is expected to be released by the end of the first quarter of 2019.
The newspaper “The Star” quoted “Lim” as saying that anyone who provides an ICO service or manages the circulation of digital assets without the consent of the Supreme Court, can be punished, upon conviction, to imprisonment for a term not exceeding 10 years and a fine not exceeding 10 million ringgit ($ 2.44 million).
The Malaysian Ministry of Finance sees promising potential for digital currencies in the country
The Malaysian Ministry of Finance also reported that it was looking optimistically at the digital assets, and the underlying technologies of plucchin. And believes that it has the potential to achieve innovation in both old and new sectors.
Meanwhile, Bank Negara Malaysia has repeatedly said that digital currencies are not illegal in his country. The central bank has advised the public to assess the risks associated with dealing with them carefully. Nigara Malaysia has published a list of companies that have announced themselves as digital or digital service platforms, but have confirmed that they have not yet issued a license. Listed companies include Belfrex Malaysia, Tali Malai, TopPoint Malaysia, Bite Trade Enterprise, Pong Technology, Pix M, Woono Malaysia, Uppen Pete, Audax International, Abet Maysia and Execut Malaysia.