Malaysian cryptocurrency regulation to classify digital currencies, tokens as securities
The finance minister of Malaysia, Lim Guan Eng, reportedly stated that the Capital Markets and Services Order 2019 will become effective from January 15, Reuters reported. The new cryptocurrency regulation will classify digital assets and tokens as securities by placing them under the Malaysian’s Securities Commission authority.
So, according to the new regulation, from Tuesday anyone operating unauthorized initial coin offerings (ICOs) or cryptocurrency exchanges in Malaysia will face a 10-year jail sentence and will have to give a fine of around 10 million Malaysian ringgit fine (around $2.4 million).
By end of the first quarter, the commission is reportedly expected to launch a framework in order to put in place “the relevant regulatory requirements for the issuance of ICOs and the trading of digital assets at digital asset exchanges in Malaysia”, the finance minister mentioned.
According to a Malaysian news outlet The Star, Eng pointed out the positive outlook of the Ministry of Finance on the crypto industry stated, “The Ministry of Finance views digital assets, as well as its underlying blockchain technologies, as having the potential to bring about innovation in both old and new industries.”
Eng also added that the ministry believes that digital assets offer as an alternative fundraising method and also as a new asset class for investors. Last year, in November, the Finance Minister emphasized that the government and the nation’s central bank must be careful with the introduction of any new cryptocurrency, as the financial regulator is busy trying to learn more about the new technologies and ensure the stability of the financial sector of the nation.
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