SC: Existing laws sufficient to regulate ICOs

KUALA LUMPUR: The Securities Commission of Malaysia (SC) believes existing securities laws are sufficient to regulate initial coin offerings (ICOs) but will do more if needed.

SC chairman Tan Sri Ranjit Ajit Singh said at a briefing yesterday the SC will monitor how the landscape evolves and will do more if needed in relation to the regulation of ICOs.

Digital assets, including initial coin offerings (ICOs), have a place in the new frontiers of financial markets but investors must be careful and fully understand any fundraising scheme that they intend to participate in, he said.

“We have stated that we think that this is an area that investors have to be very careful about and we have issued several cautionary statements around this. The potential for investors to suffer losses through an ICO is very real and consistent with the position taken by many markets around the world.

“We have certainly provided cautionary position to the investors and to say be alert, be very careful and understand what you are doing. When you don’t understand, seek advice,” Ranjit cautioned.

He said potential ICOs must seek clarification with the SC as they could potentially be in breach of securities laws when trying to raise funds from the public. On this, Ranjit said, about 12 ICO issuers are engaging with the SC.

“If we find that others, through our own review of their white papers and what they are trying to do, are potentially in breach of the laws, we will take appropriate action,” he said. - by Eva Yeong