Securities Commission Malaysia Issues Media Release on Digital Currency and Digital Token

Following on the prescription of digital currency and digital token as securities under the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019, the Securities Commission Malaysia (SC) has issued a media release on 14 January 2019 stating, inter alia, that –

  • The SC will put in place guidelines to regulate offering and trading of digital assets;

  • The guidelines will, among others, establish the criteria for determining fit and properness of issuers and exchange operators, disclosure standards and best practices in price discovery, trading rules and client asset protection; and

  • Those dealing in digital assets will be required to put in place anti-money laundering and counter-terrorism financing rules, cyber security and business continuity measures.

The SC also stated that with the coming into force of the Prescription Order, the offering of digital assets, as well as its associated activities, will require authorisation from the SC and compliance with relevant securities laws and regulations.
To implement the regulatory framework on digital assets, the SC and Bank Negara Malaysia will enter into coordination arrangements to ensure compliance with laws and regulations under the purview of both regulators. The relevant regulatory framework is expected to be launched by end-Q1 2019.