Law on digital assets comes into force today

PUTRAJAYA: The Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 comes into force today.

Finance Minister Lim Guan Eng said digital currencies and digital tokens as defined in this order (collectively known as “digital assets”) were prescribed as securities and would be regulated by the Securities Commission Malaysia (SC).

“The offering of such instruments, as well as its associated activities, will require authorisation from SC and needs to comply with the securities laws and regulations.

“The ministry views digital assets, as well as its underlying blockchain technologies, as having the potential to bring about innovation in old and new industries. We believe digital assets have a role to play as an alternative fundraising avenue for entrepreneurs and new businesses, and an alternate asset class for investors.

“In this regard, SC will put in place the relevant regulatory requirements for the issuance of initial coin offerings (ICOs) and the trading of digital assets at digital asset exchanges in Malaysia.

“This framework is expected to be launched by end-Q1 2019,” said Lim in a statement.