‘Be wary of initial coin offerings’

KUALA LUMPUR: Securities Commission Malaysia ( SC) and Bank Negara Malaysia ( BNM) have advised the public to be wary of any initial coin offering ( ICO) schemes.

The public are reminded to exercise caution before participating in any ICO schemes by checking their names against the list of institutions that are licensed under the laws administered by regulators.

In a statement, the central bank said issuers should also be mindful that the launch of an ICO, the offering of digital tokens in exchange for digital currency or any form of payment and incidental activities thereof, might trigger regulatory requirements under securities laws.

“No person is permitted to carry out any regulated activities such as fundraising, fund management and dealing in capital market products without obtaining necessary approval or authorisation from the SC.

“Further, ICO operators are prohibited from undertaking regulated activities such as deposit taking and banking business, foreign exchange administration activities and remittances, without the necessary authorisation under financial services laws administered by BNM,” it said.

BNM said both authorities would continue to monitor these developments, and would not hesitate to take action against any person conducting illegal or unauthorised activities. — Bernama