The Ministry of Finance (MOF), Malaysia recognizes the potential of digital assets and its underlying blockchain technologies in bringing of innovation in both old and new industries. Furthermore, it also considers the role of digital assets and blockchain technology in alternative fundraising avenue for entrepreneurs and new businesses, and an alternate asset class for investors.
In a statement released by the Ministry of Finance, Malaysia on 14th January, it has been notified that the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 will come into force on15 January 2019 and following the same, digital currencies and digital tokens collectively known as “digital assets” are prescribed as securities and will be regulated by the Securities Commission Malaysia (SC).
The order further says that the SC will put in place the relevant regulatory requirements for the issuance of initial coin offerings (ICOs) and the trading of digital assets at digital asset exchanges in Malaysia and this framework is expected to be launched by end-Q1 2019.
The statement also alarms the related persons 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.
(This article is based on the translated excerpts of the media release of the Ministry of Finance Malaysia)
