Securities Commission Malaysia on January 14th announced new regulation, “Capital Markets and Services Digital Currency and Digital Token Order, 2019,” to aid regulation of cryptocurrency activities.
Malaysia’s Securities Commission announced that the country will be implementing new regulations on Initial Coin Offerings (ICOs) and digital assets trading.
The status of the crypto industry in Malaysia had been unclear. Cryptocurrency trading was not termed illegal but remained unregulated.
However on January 14th, Malaysia’s Minister of Finance Lim Guan Eng, announced new regulations guiding crypto trading. “Capital Markets and Services Digital Currency and Digital Token Order, 2019” will help serve as a criteria for coin issuers and exchange operators. It will also help to ensure standard practices in terms of pricing, trading and asset protection.
Any digital asset offerings in the future will require authorization from the Securities Commission. It will also have to meet anti-money laundering and counter-terrorism financing rules.
The regulations will be launched before the end of the first quarter in 2019. Any trader found trying to bypass the law will be subject to a fine of up to RM10 million (US$2.4 million) or a prison sentence of up to 10 years.
The Securities Commission and the country’s central bank announced in December that the new laws would aid fair trading and protect investors’ assets.
According to reports, HSBC Malaysia and several Malaysian regulators, including Bank Negara Malaysia (BNM), are working together to launch a blockchain-based trade finance platform.
The consortium between CGCX.io, the Archipelago Group, and IBH Capital is reportedly developing a blockchain-based investment bank in Malaysia. The bank will have a separate division for handling crypto-currencies, blockchain and digital banking operations.
In July last year, international technology developer NEM Foundation opened a new Southeast Asian headquarters in Kuala Lumpur. The 11,000-square-foot facility is said to be the biggest blockchain-focused establishment in Asia. It currently serves as a learning center, incubator and accelerator for blockchain startups.
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