Regulating as Securities OneHash bonus
Regulating as Securities
Malaysian Finance Minister Lim Guan Eng said on Monday that his country”will govern initial coin offerings (ICOs) and the trade of cryptocurrencies,” Reuters reported, adding:
An order to recognize digital currencies and digital tokens as securities will come into force on Jan. 15, under the regulation of the Securities Commission Malaysia [SC].
The order is known as”the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019.” The commission must comply with securities laws and approves cryptocurrencies, ICOs and their related activities, the minister explained.
After Lim’s announcement, the Securities Commission Malaysia verified that it”will put in place guidelines to regulate offering and trading of digital assets.” The regulator noted that”the offering of electronic assets, along with its associated activities, will require authorisation from the SC and compliance with relevant securities laws and regulations,” elaborating:
Criteria will be among others, established by the guidelines for determining properness and healthy of issuers and exchange operators, disclosure standards and practices in client asset protection, trading principles and price discovery. Those dealing in electronic assets will be asked to put in place anti-money laundering and counter-terrorism financing (AML / CFT) rules, cyber security and business continuity measures and bitcoin casino best slots.
What’s more, the commission stated that it”will enter into coordination arrangements” with the Bank Negara Malaysia, the country’s central bank, in order”to guarantee compliance with laws and regulations under the purview of both regulators.” In addition, the regulator revealed that”The relevant regulatory framework is expected to be launched by end-Q1 2019.”
Lim was quoted by The Star as saying,”Any individual offering an ICO or running a digital asset exchange without SC’s approval may be penalized, on conviction, with imprisonment not exceeding 10 years and fine not exceeding RM10mil [~$2.44 million].”
Malaysian Finance Minister Lim Guan Eng
Ministry of Finance Sees Potential
The finance ministry”viewpoints digital assets, as well as… underlying blockchain technologies, as having the potential to bring about innovation in both old and new sectors,” Lim further clarified, elaborating:
Specifically, we consider assets have a role to play as an alternate fundraising route for entrepreneurs and new companies, and an asset class for investors.
Bank Negara Malaysia has stated that cryptocurrencies aren’t legal tender in its own countryTrusted bitcoincasino casino The central bank has advised the public to assess the risks associated in dealing with them.
Bank Negara Malaysia has published a list of companies that have announced themselves as exchanges or service providers, but emphasized that it has neither certified nor authorized these businesses. Are Belfrics Malaysia, Bitpoint Malaysia Bit Malay, Bit Trade Enterprise, Bong Technology, Bxm, Luno Malaysia, Openbit, Udax International, Upbit Malaysia, and Xbit Asia.
What do you think of Malaysia starting to regulate cryptocurrencies and ICOs? Tell us in the comments section below.
Images courtesy of Shutterstock, the Malaysian government, and Reuters.
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