Or­der on pre­scrip­tion of dig­i­tal as­sets comes into force

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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

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