The regulation of the Malaysian cryptocurrency will come into force on Tuesday, according to Reuters on Monday, January 14th.
Malaysian Finance Minister Lim Guan Eng said today that the Capital Markets and Services Order 2019 will enter into force on January 15th. According to Reuters, the new regulation classifies digital currencies, tokens and crypto-assets as securities, placing them under the authority of the Securities Commission.
Starting Tuesday, any person who handles initial unauthorized coin offerings (ICOs) or exchanges of digital assets in Malaysia will be open to a 10-year prison sentence and 10 million fine Malaysian ringgit (about $ 2, 4 million).
According to the Malaysian magazine The Star, Eng noted the positive prospects of the Ministry of Finance on the cryptocurrency sector, stating:
"The Ministry of Finance considers digital assets and underlying blockchain technologies as potentially capable of producing innovation both in old and new industries".
In particular, Eng noted that the ministry believes digital assets offer both an alternative fund-raising method and a new asset class for investors.
As reported by Cointelegraph, the Malaysian government was still undecided whether to legalize cryptocurrencies only two days ago.
Yet, according to reports, from November last year it was clear that Malaysia will issue cryptocurrency and ICO regulations in the first quarter of 2019, as reported by Cointelegraph at the time.