The regulation of cryptocurrencies have been moving in Malaysia
According to the Bank of Negara in Malaysia the Securities Commission in Malaysia have issued a joint statement regarding the elaboration of its policies, for the applicable regulations regarding Cryptocurrencies and ICOs.
The Malaysian regulatory institutional bodies have provided details regarding its intentions to regulate digital trading of assets. This was in order to protect the interest of investors and to promote fair orderly trading business platforms. In a statement that was issued by the Securities Commission in Malaysia (SC) and the Bank of Negara Malaysia (BNM), it has defined digital assets as digital currencies and digital tokens. The regulators have made the following statements about the regulation of the markets:
“SC will regulate issuance of digital assets via initial coin offering (ICO) 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.”
Under these new rules regarding the cryptocurrency market, Exchanges and ICO projects, there will be obligations for following the “Guidelines of preventing Money Laundering and terrorism Financing”. These guidelines will be set by the SEC, which means that all digital currency traders and ICO issuers should apply for a BNM licenses. This will be in particular for products and services that are related to currency and payment situations.
According to recent reports the Central Bank has used the opportunity in order to reiterate that digital assets are not legal tenders in Malaysia. Advising the public to weight the risks carefully that are involved in the use of digital asset trading.
The world of crypto assets is looking good for Malaysian users
The institution gave a statement saying that:
“In order to implement the regulatory framework on digital assets, the SC and BNM will enter into coordination arrangement to ensure compliance with laws and regulations under the purview of both regulators.”
There was a report that was released back in July regarding the move by the BNM and SC after a meeting at the University of Malaya’s Faculty of Law. Urging the lawmakers to bring priority in the establishment of an effective environment for the Blockchain industry.
According to a statement given by Authors:
“The report is prepared with the objective of encouraging economic development in Malaysia without stifling innovation or compromising consumer protection by providing support to startups, small-medium enterprises and large corporations in their endeavors to adopt Blockchain Technology.”
The Malaysian authorities have launched an extensive investigation earlier this year surrounding any criminal activities involving the use of cryptocurrencies. As the industry grows and moves towards exponential growth, the policy officers need to attend educational courses about this new and life changing technology. As it is set to change the financial world in ways that we never once thought was possible, especially not in the fiat currency system.
What is your opinion of these approaching regulations on the crypto market? Please feel free to leave your comments down below.
