Malaysia begins to regulate cryptocurrencies

Malaysian Finance Minister Lim Guan Eng said Monday that his country will "regulate ICOs and cryptocurrency trading," Reuters said. The order comes into force on 15 January. Crypto service providers and exchanges must obtain approval from the country's Securities Commission, which works with the Central Bank.

According to Lim's statement, the Securities Commission Malaysia confirmed that "it will introduce guidelines to regulate the supply and trade of digital assets."

Those dealing with digital assets need to introduce anti-money laundering and terrorist financing (AML / CFT) regulations, cybersecurity measures and business continuity.

In addition, the Commission stated that it will "set up coordination arrangements with Bank Negara Malaysia, the central bank of the country, to ensure compliance with laws and regulations under the supervision of both regulators".

Lim was quoted by The Star as saying: "Any person offering an ICO or exchanging digital assets without SC's consent may be subject to a maximum term of imprisonment of 10 years and a maximum fine of 10 million RM [2.44 Million $]. "

The Treasury "sees digital assets as well as ... actual blockchain technologies as the potential to bring about innovation in old and new industries," Lim continued.

In particular, we believe that digital assets can play a role as an alternative fundraising pathway for entrepreneurs and new businesses and as an alternative asset class for investors.

Meanwhile, Bank Negara Malaysia has repeatedly stated that cryptocurrencies are not legal tender in their country. The central bank has recommended that the public carefully assess the risks associated with its dealings.

Bank Negara Malaysia has published a list of companies that have declared themselves to be crypto-currency exchanges or service providers, stressing that they have neither been licensed nor approved. Companies on the list include Belfrics Malaysia, Bit Malay, Bitpoint Malaysia, Bit Trade Enterprise, Bong Technology, Bxm, Luno Malaysia, Openbit, Udax International, Upbit Malaysia and Xbit Asia.

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