Malaysia Imposes Strict Laws on Crypto Trading and ICOs

The Malaysian government has started to regulate the initial coin offerings (ICO) and crypto trading which came into effect on January 15, according to a Reuters report.

The laws imposed on the nascent market are a bit harsh as Lim Guan Eng, the Finance Minister of the country, revealed that the ministry has proposed a 10-year jail term or a fine of RM 10million ($2.4 million) for any person or entity launching unauthorized ICOs or participating in the exchange of digital goods.

Eng confirmed that the digital asset market would come under the watch of the Securities Commission Malaysia (SCM), the country’s existing financial market watchdog.

PENGUATKUASAAN PERINTAH MENETAPKAN ASET DIGITAL SEBAGAI SEKURITI BERMULA ESOK pic.twitter.com/plG33Q1v3H

— Ministry of Finance🇲🇾 (@MOFmalaysia) January 14, 2019

In his statement, the Finance Minister said: “The Ministry of Finance (MOF) views digital assets, as well as its underlying Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term technologies, as having the potential to bring about innovation in both old and new industries.”

“In particular, we believe digital assets have a role to play as an alternative fundraising avenue for entrepreneurs and new businesses, and an alternate asset class for investors,” he added.

Upcoming Framework

The SCM is expected to come up with a regulatory framework for the digital asset sector by the end of the first quarter of 2019. Eng said that these will be “the relevant regulatory requirements for the issuance of ICOs and the trading of digital assets at digital asset exchanges in Malaysia.”

Last month, the SEM and Bank Negara Malaysia (BNM), the country’s central bank, issued a joint statement providing some clarity on the regulatory authority under which the digital asset sector falls.

Though the BNM do not consider crypto as legal tender, the statement mentioned that “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 BNM laws and regulations relating to Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and currency matters. In addition, ICO issuers and digital asset exchanges are subject to the SC’s Guidelines on Prevention of Money Laundering and Terrorism Financing.”