The Malaysian Government, under its Securities Commission, recently announced the creation of a new digital currency Regulatory Framework. The new guideline is to control transactions involving crypto currency Tokens within the country’s borders.
Malaysia Gets New Cryptocurrency Rule of Law
Recently, the securities commission of Malaysia released a new guideline aimed at streamlining activities within the Cryptocurrency and blockchain industry. According to the new rule, all ICOs and IPOs can only be done via the commission certified platforms.
The new regulation also mentioned the requirement to be met by future token offerers and that for platforms wishing to get the commission’s approval. The new regulation also revealed in detail the role every approved platform must play.
The commission on Wednesday said the new regulation is published in accordance with section 377 of Malaysia’s Capital Market and Service Act of 2007. The commission also revealed that it did prior consultation before formulating the new regulation.
What’s Next for Blockchain and Cryptocurrency Firms in Malaysia?
According to the new regulations set out to govern Cryptocurrency companies in Malaysia, it will be illegal for any firm to seek public funding without the prior written authority of the country’s Financial governing body. The guide specified that all offerings in Cryptocurrency must be done via Initial Exchange Offerings. The law further requires the IEO agent to be registered with the securities commission prior to this offering.
Companies aiming to gain investments through IEO must have at least $1.2 million in paid up capital to be approved. The regulations also require that the platforms do all estimations and due diligence prove the compliance of the token offer and the detail of the Offerings.
Furthermore, the law still require any body planning a public offering to develop a white paper. The white paper would be submitted to the commission and should be prior approved by an IEO platform. The new rule is scheduled to come into action during the second half of the year 2020.