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The regulations for cryptocurrency exchanges and initial coin offerings (ICOs) will go into effect in Malaysia by the first quarter of 2019, Finance Minister Lim Guan Eng was recently quoted saying by The Star.
Guan Eng officiated the SCxSC Fintech Conference 2018 organised by the Securities Commission Malaysia (SC). He said that, in an update, the SC told him that the regulations are part of its efforts to encourage alternative fundraising avenues and new investment asset classes.
In September 2017, the SC issued a warning against initial coin offerings (ICOs) related investment schemes in the wake of growing popularity of digital token based fundraising activities in the country.
“While some parties might still be sceptical 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,” he said during his keynote address, adding that interested parties will be required to operate under the framework set up by Bank Negara Malaysia and the SC.
“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.”
In addition, Guan Eng also shared details regarding the recently announced co-investment fund (CIF) for equity crowdfunding (ECF) and peer-to-peer (P2P) financing. The CIF is part of the government’s initiative to enhance access to financing for the micro, small, and medium enterprises (MSMEs), which traditionally face challenges in obtaining financing to catalyse their growth.
Earlier this year, the BNM published the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) Policy for Digital Currencies, in order to ensure that effective measures are in place to address these risks as well as enhance transparency of cryptocurrency activities in the country.
