Any person who runs or manages the ICO exchange digital assets without the permission of the controller can be arrested.
The Minister of Finance of Malaysia announced that it has entered into force the order concerning the regulation of cryptocurrency IPOs tokens as securities. Suppliers cryptanalytic services and exchanges to obtain permission from the securities Commission of the country, which together with the Central Bank will monitor the compliance with laws, informs Rus.Media.
The Minister of Finance of Malaysia lim Guan eng (Lim Guan Eng) said Monday that the country “will adjust the initial placement of tokens (ICO) and trading in digital currencies,” reports Reuters. The report also noted:
“Order on the recognition of digital currencies and the digital token as the securities will come into force on 15 January in accordance with the decision of the securities Commission of Malaysia”.
Cryptanalytic, ICO and related activities should be carried out in accordance with the securities laws and must be approved by the Commission, the Minister explained. After the Declaration of Lima, the securities Commission of Malaysia confirmed that it “will enact guidelines for managing the supply and trade of digital assets.” The regulator noted that “offer the digital assets, as well as related activities, will require authorization by the Commission and compliance with relevant laws and regulations on securities”. In addition, the regulator said:
“The guidelines, among other things, establish criteria for determining compliance with the issuers and operators of exchanges, disclosure standards and best practices in disclosure of prices, trade rules and protection of customer assets. Those who are involved in digital assets, will have to enact rules to combat money laundering and terrorism financing, cyber security measures and continuity of business processes”.
In addition, the Commission stated that it “will take on the co-ordination arrangements” with the Bank Negara Malaysia, the Central Bank of the country with the aim “to ensure compliance with laws and regulations within the competence of both regulators.” In addition, the regulator said that “appropriate legal and regulatory framework needs to be released before the end of the 1st quarter of 2019”.
Newspaper the Star quoted lim, who said that “any person who runs or manages the ICO exchange digital assets without the permission of the controller, can be punished with imprisonment for a term not exceeding 10 years and a fine of not more than 10 million yuan [~ $2.44 million]”. The Ministry of Finance “considers digital assets, and… that lies at their base technology of the blockchain, which has the potential for innovation both old and new industries,” said lim. In addition, he said:
“In particular, we believe that digital assets play the role of an alternative method of raising funds for entrepreneurs and new businesses, as well as alternative asset class for investors”.
Meanwhile, Bank Negara Malaysia has repeatedly said that cryptanalytic are not legal tender in the country. The Central Bank advised the public to carefully assess the risks before you invest in digital assets. Central Bank published list of companies who call themselves cryptomelane exchanges or service providers, but stressed that he was not licensed and did not allow the operation of these enterprises. Among the companies in this list – Belfrics Malaysia, Bit, Malay, Malaysia Bitpoint, Bit Trade Enterprise, Bong Technology, Bxm, Luno Malaysia, Openbit, Udax International, Upbit Xbit Malaysia and Asia.
Regulation of cryptocurrencies and the ICO was the result of a long period of uncertainty as to the legal status of the industry in Malaysia. Last week the information appeared that the Malaysian government was previously unable to determine the status of the cryptocurrency, however, apparently, the official who made this statement was not until the end familiar with the matter.
In November the Parliament of Malaysia urged the government to form an adequate regulation of digital money. In the same month it became known that approval for the issue of new cryptocurrency will give the Central Bank of the country.