January 15, 2019 | AtoZ Markets - According to the global media, the Malaysian cryptocurrency regulation under the title “Capital Markets and Services Order 2019”, comes into force this Tuesday. The statement was made by the Minister of Finance of Malaysia Lim Guan Eng.
New Document Classifies Cryptos As Securities
The new document classifies digital currencies, tokens and crypto assets as securities, and delegates control of them to the Securities Commission of Malaysia (SC).
As was reported, the commission will work closely with the Central Bank to develop a regulatory framework for the new law. It is assumed that work on this project will be completed by the end of the first quarter of 2019.
Illegal Crypto Activity Will be Fined
The new regulation means that the initial coin offerings and the exchanges of tokens must be approved by SC before commencing operations and must comply with the securities laws in the country.
According to the local press, anyone detained by offering unauthorized initial coin offerings or unauthorized crypto-exchange will face 10 years in prison and a fine of 10 million ringgits.
Organizations involved in digital assets will have to comply with the rules on combating money laundering and terrorist financing (AML / CFT), as well as “measures for cybersecurity and business continuity.”
Ministry of Finance Stays Positive About the Blockchain Future
According to the Malaysian press, the Minister of Finance of Malaysia emphasized the positive outlook of the Ministry of Finance regarding the cryptocurrency industry.
Lim Guan Eng stated that the Ministry of Finance is considering digital assets, as well as the basic technology of the blockchain, as “having the potential for innovation in both old and new industries”.
He noted that the ministry believes that digital assets offer investors both an alternative method of raising funds and a new class of assets.
As was previously reported, the Malaysian government has not yet resolved the issue of legalizing cryptocurrency. However, according to the last year reports in November it became clear that Malaysia will accept the rules on cryptocurrency and ICO in the first quarter of 2019.
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