SC to regulate issuance of digital assets in Malaysia
By Digital News Asia December 6, 2018
- In this regard, digital assets refer to digital currencies and digital tokens
- BNM reiterates that digital assets are not legal tender in Malaysia
THE Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) issued a joint statement on Dec 6 to provide clarity on the regulatory approach for the offering and trading of digital assets in Malaysia. In this regard, digital assets refer to digital currencies and digital tokens.
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. Regulations are currently being put in place to bring digital assets within the remit of securities laws to promote fair and orderly trading and ensure investor protection.
ICO issuers and digital asset exchanges which are involved in the issuance or dealing of digital assets with a payment function will need to comply with relevant BNM laws and regulations relating to payments and currency matters. In addition, ICO issuers and digital asset exchanges are subject to the SC’s Guidelines on Prevention of Money Laundering and Terrorism Financing.
BNM wishes to reiterate that digital assets are not legal tender in Malaysia. Members of the public are advised to carefully evaluate the risks associated with dealings in digital assets.
In order to implement the regulatory framework on digital assets, the SC and BNM will enter into coordination arrangements to ensure compliance with laws and regulations under the purview of both regulators.