The Central Bank of Malaysia along with the securities regulator has decided to partner in order to implement a regulatory framework for major cryptocurrencies and Initial Coin Offering (ICO) tokens.
The agreement has been signed with mutual interests. The Bank Negara Malaysia and the Securities Commission Malaysia, together in a joint statement, came to a conclusion that they will together ensure the compliance with laws and regulation, and it will be under the eyes of two regulators.
As per the media reports:
“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,”
ICO Regulations and Legislation
In order to protect investors and to enhance the fair promote and orderly trading, the Securities Commission will regulate the Initial Coin Offerings (ICOs) and trading on cryptocurrency, whereas, the legal proceedings are undertaken by bringing the virtual assets under the existing legislation.
The regulation process will have the crypto exchanges and the ICOs issuers associated with the virtual assets that will possess a payment function to ensure the compliance under the laws and regulations of the central bank of Malaysia. Also, there must be compliance with the guidelines by the Securities Commission which focus on preventing the money laundering and the financial terrorism.
“The digital assets are not legal tender in Malaysia”, says the central bank in the joint statement while clearing on the pro-crypto stance of Southeast Asian countries.
Crypto Regulations Next Year
A week ago, Lim Guan Eng, the finance minister of Malaysia, said that the crypto regulations will be implemented in the first quarter of next year. This will be done to safeguard the interests of investors.
Further, Lim stated that the central bank of the country and the securities regulators will partner in order to formulate regulation for Initial Coin Offering and crypto. He added:
“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.”