Digital currency under Securities Commission purview from tomorrow

Finance Minister Lim Guan Eng said in a statement that the SC is expected to launch a regulatory framework for the issuance of ICO and digital assets trading. ― Picture by Sayuti Zainudin
Finance Minister Lim Guan Eng said in a statement that the SC is expected to launch a regulatory framework for the issuance of ICO and digital assets trading. ― Picture by Sayuti Zainudin

KUALA LUMPUR, Jan 14 — Digital assets will be regulated by the Securities Commission Malaysia (SC) when the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 is enforced tomorrow.

Finance Minister Lim Guan Eng said in a statement that with the order in place, the offering of digital currency and digital token as well as its associated activities will require authorisation from the SC and need to comply with relevant securities laws and regulations.

He also said the SC is expected to launch a regulatory framework for the issuance of initial coin offerings (ICO) and trading of digital assets in the first quarter of this year.

“Any person offering an ICO or operating a digital asset exchange without SC’s approval may be punished, on conviction, with imprisonment not exceeding 10 years and fine not exceeding RM10 million,” he said in a statement.

Lim pointed out that his ministry viewed digital assets and 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,” he said.

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