By More news on the Malaysian regulation front as the Malaysian Central Bank & the nation’s securities regulator has recently announced that they will collaborate in an effort to implement a regulatory framework for cryptocurrencies as well as initial coin offerings. (ICOs)
Announced in a joint statement the Securities Commision Malaysia and Bank Negara Malaysia disclosed that their arrangement will be restricted to only ensuring that compliance with the regulations and laws which fall under the two parties jurisdiction are met.
The press release stated:
“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.”
ICOs To Be Regulated By The Securities Commision & Central Bank:
The Securities Commision Malaysia will oversee the regulation of initial coin offerings (ICOs) as well as crypto trading in the nation with the necessary legislation currently being outlined with the purposed of bringing all digital currencies under the countries current securities laws in an effort to protect potential investors and ultimately to promote fair and trading of an orderly fashion.
The regulations which are to be expected include requiring all crypto exchanges and ICO issuers who are involved with dealing with digital assets to implement or have a payment function which ensures compliance under the central bank’s laws & regulations. Crypto exchanges and ICO issuers will also be under the requirement to ensure compliance with the country’s Guidelines on Prevention of Money Laundering and Terrorism Financing’ set by the Securities Commission.
While Malaysia is a nation that is pro-crypto, the central bank has been explicit in their joint statement that currently “digital assets are not legal tender in Malaysia’.
2019’s First Quarter Sees The Arrival Of Regulations:
This news comes hot on the heels of Lim Guan Eng’s (Malaysia’s Finance Minister) announcement a week ago in which he stated that cryptocurrency regulations which will be aimed at the safeguarding of investor interests will, in fact, be enforced as early as the first quarter of 2019.
However, it must be noted that this was not explicitly stated, but Lin did hint back then that the nation’s central bank, as well as the securities regulator, would forge a partnership in order to create a comprehensive regulatory framework for ICO tokens as well as digital currencies under the guide of the finance ministry.
Back in late November, Lin had advised that the central bank has the sole authority of determining the fate of anyone who has intentions of issuing digital assets.
Lim stated:
“This is where I wish to advise all parties, no matter who they are, intending to issue bitcoins or cryptocurrency, that they must refer to Bank Negara which is the authority that will have the final say on this new form of currency.”
Could this be the good news that the cryptocurrency community in Malaysia needs? Or could it spell more obstacles for them? Let us know your thoughts.
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