A press release by the Securities Commission of Malaysia and the Central Bank of Malaysia establishes that the two organizations will work together to develop a framework for cryptocurrencies and ICO tokens in the South East Asian country. The new laws in the making when implemented will bring digital assets under the preview of securities laws so as to ensure investors are protected and trading in these virtual currencies is fair and orderly.
Joint Efforts to regulate cryptocurrencies
“In order to implement the regulatory framework on digital assets, the SC and BNM will enter into coordination arrangements to ensure compliance with laws and regulations under the purview of both regulators.”
The regulations, when enforced are expected to be met by the cryptocurrency exchanges as well as firms which issue the ICOs in the country. These digital assets handling organizations will have to comply with the Security Commission’s lsquo;Guidelines on Prevention of Money Laundering and Terrorism Financing.’
However, the central bank has clarified that “digital assets are not yet legal tender” in Malaysia.
Earlier this week, Lim Guan Eng, the Finance Minister had stated that “While some parties might still be skeptical of this space, there can be no doubt that we need appropriate regulations to be put in place and enforced to safeguard the interest of investors.”
Lim had indicated that the new set of regulatory changes would be brought about in the country in tune with the shift in consumer usages. The minister had also mooted that the two main regulatory bodies in the country would chalk out the framework by which retail users, traders or global participants will have to abide by, once they are legalized and implemented in the country.
The Finance Minister had stated that:
“Both Bank Negara and the SC, in terms of formulating this framework, will be under the auspices of the Finance Ministry. The Finance Ministry will lead the committee comprising of Bank Negara, the SC, and the MOF itself.”
With the issuing of the formal statement by the top regulatory bodies of the nation, Malaysia is another crypto marketplace which adds to the growing list of governments changing their rules and regulations to include the operations of these virtual assets.
In the case of Malaysia, the Minister has authorized the central bank, Bank Negara as the official authority to decide on this form of the digital currency.
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