Bank Negara urges the public to weigh digital asset risks carefully

PETALING JAYA: Bank Negara is urging members of the public to carefully evaluate the risks associated with dealings in digital assets, which are not legal tender in Malaysia.

In a joint statement yesterday, Bank Negara and the Securities Commission (SC) said both parties would work together to implement the regulatory framework for the digital assets to ensure they comply with laws and regulations under the purview of both regulators.

Digital assets refer to digital currencies and digital tokens.

“SC will regulate issuances of digital assets via initial coin offerings (ICOs) and the trading of digital assets at digital asset exchanges in Malaysia.

“Regulations are currently being put in place to bring digital assets within the remit of securities laws to promote fair and orderly trading and ensure investor protection,” Bank Negara and the SC said in the statement.

The regulators cautioned ICO issuers and digital asset exchanges which issue or deal with digital assets with a payment function must comply with relevant Bank Negara laws and regulations relating to payments and currency matters.

ICO issuers and digital asset exchanges are subject to SC’s Guidelines on Prevention of Money Laundering and Terrorism Financing.