Order on prescription of digital assets comes into force
KUALA LUMPUR: The Capital Markets and Services ( Prescription of Securities) ( Digital Currency and Digital Token) Order 2019 will come into force today.
Finance Minister Lim Guan Eng said following this, digital currencies and digital tokens as defined in the order (collectively known as digital assets) would be prescribed as securities and regulated by the Securities Commission Malaysia (SC).
“The offering of such instruments, as well as its associated activities, will require authorisation from the SC and need to comply with the relevant securities laws and regulations,” he said in a statement yesterday.
Lim said the Ministry of Finance viewed digital assets, as well as its underlying blockchain technologies, as having the potential to bring about innovation in both old and new industries.
“In particular, 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, the 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,” he added.
Lim said the SC framework was expected to be launched by end of the first quarter of 2019.
“Any person offering an ICO or operating a digital asset exchange without the SC’s approval may be punished on conviction, with an imprisonment not exceeding 10 years and a fine not exceeding RM10 million,” he added. — Bernama