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Economics and regulation
The regulator and the central bank of Malaysia will have to strengthen their control over initial coin offerings (ICO) through new rules aimed at eliminating issues related to unfair commercial practices and the alleged risk of money laundering and terrorist financing . The Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) said they will also strengthen regulation in the cryptocurrency trade to increase investor security.
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"Fair and neat trade"
"The Supervisory Committee will regulate digital goods issues through ICO and digital goods trade in digital asset exchanges in Malaysia," the regulators said in a joint statement released on 6 December. "The regulations are currently in place to bring digital assets into the mandate of securities laws to promote fair and orderly trade and ensure investor protection," they added.
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Bitcoins and other digital currencies are not recognized as legal tender in Malaysia, but they are not even banned. This means that individuals or companies that negotiate cryptocurrency are free to do so, but they are not protected by law. However, under the anti-money laundering legislation, all encrypted exchanges active in Malaysia are subject to reporting requirements.
Malian finance minister Lim Guan Eng announced that the cryptocurrency regulations will come into effect during the first quarter of 2019. He also warned people and companies planning to issue new cryptocurrencies with a stern: "Do not do it", advising wait for the guide of the central bank of the country.
Lim Guan Eng said that the government is open to emerging money forms such as virtual currency, but only if they adhere to the law.
Compliance execution
Now the Securities Commission and Bank Negara are starting to put this regulatory framework together. The two "will enter into coordination agreements to ensure compliance with the laws and regulations under the jurisdiction of both regulators," said the statement.
<img class = "alignright wp-image-257807 size-medium” title=”Malaysian financial regulators intensify the examination of ICOs, cryptocurrencies” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/shutterstock_315926129-300×200.jpg” alt=”Malaysian financial regulators to intensify the ICO review, Cryptocurrencies "width =" 300 "height =" 200 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/shutterstock_315926129 -300×200.jpg 300 w, https://news.bitcoin.com/wp-content/uploads/2018/12/shutterstock_315926129-768×512.jpg 768w, https://news.bitcoin.com/wp-content/uploads/ 2018/12 / shutterstock_315926129- 696×464.jpg 696w, https://news.bitcoin.com/wp-content/uploads/2018/12/shutterstock_315926129-630×420.jpg 630w, https://news.bitcoin.com/wp- content / uploads / 2018/12 / shutterstock_315926129.jpg 1000w "sizes =" (maximum width: 300px) 100vw, 300px”/>
He added: "Issuers of issuing initial coins and digital exchange exchanges that are involved in the issue or trading of digital assets with a payment function will have to comply with the BNM's laws and regulations on payments and issues. currency. "
Malaysia is slowly emerging as a hotbed of cryptocurrency trading. The government is not particularly averse to technology. For example, Pakatan Harapan, the ruling party of Malaysia, is collecting political funding through a cryptocurrency called "harapan currency" in preparation for the general election of 2019. Party officials say they have presented documents from the harapan currency to Bank Negara for # 39; approval.
What do you think about regulatory developments in Malaysia? Let us know in the comments section below.
Images courtesy of Shutterstock.
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