Malaysia regulates digital assets

Source: Xinhua| 2018-12-06 19:01:02|Editor: xuxin
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KUALA LUMPUR, Dec. 6 (Xinhua) -- Malaysia will regulate issuances of digital assets via initial coin offerings (ICO) and the trading of digital assets at digital asset exchanges in the country, regulators said Thursday.

Securities Commission Malaysia (SC) and Bank Negara Malaysia, the central bank, said that regulations are currently being put in place to bring digital assets within the remit of securities laws to promote fair and orderly trading and ensure investor protection.

In a joint statement, both parties provide clarity on the regulatory approach for the offering and trading of digital assets in Malaysia. Digital assets refer to digital currencies and digital tokens, according to the statement.

ICO issuers and digital asset exchanges which are involved in the issuance or dealing of digital assets with a payment function will need to comply with relevant central bank laws and regulations relating to payments and currency matters, said the statement.

ICO issuers and digital asset exchanges are subject to the SC's guidelines on Prevention of Money Laundering and Terrorism Financing, it added.

The central bank also reiterated that digital assets are not legal tenderd in Malaysia.

"Members of the public are advised to carefully evaluate the risks associated with dealings in digital assets," it said.

The security commission and the central bank will enter into coordination arrangements to ensure compliance with laws and regulations under the purview of both regulators.