SC and BNM Issue Joint Statement on Regulation of Digital Assets and Exchanges
06 December 2018
Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) have today issued a joint press release which states that -
- SC will regulate the issuance of digital assets via initial coin offerings (ICO) and the trading of digital assets at digital asset exchanges in Malaysia;
- 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;
- 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 and currency matters. ICO issuers and digital asset exchanges will also be subjected to SC’s Guidelines on Prevention of Money Laundering and Terrorism Financing;
- SC and BNM will enter into coordination arrangements to implement the regulatory framework and ensure compliance with laws and regulations under the purview of both regulators.
It had been announced at the 2019 Malaysian Budget on 2 November 2018 that the regulatory framework to approve and monitor digital assets and token exchanges will be gazetted in early 2019.