Malaysian Virtual Currency Regulation to Recognize Digital Assets, Tokens as Assurances
Reuters published on Monday, Jan.14. Malaysian digital currency regulation comes into play on Tuesday.
Lim Guan Eng, the Malaysian finance minister, supposedly said today that the Capital Markets and Services Order 2019 would become operative on Jan. 15. As per Reuters, the new regulation identifies digital currencies, tokens, and crypto-assets as securities, positioning them under the Securities Commission’s authority.
Commencing from Tuesday, any person working unauthorized initial coin offerings (ICOs) or digital asset exchanges in Malaysia will be supposedly encountering a 10-year jail sentence and a 10 million Malaysian ringgit fine (nearly around $2.4 million).
As per Malaysian news outlet The Star, Eng stated the positive outlook of the Ministry of Finance on the cryptocurrency industry, mentioning:
“The Ministry of Finance views digital assets, as well as its underlying blockchain technologies, as having the potential to bring about innovation in both old and new industries.”
Specifically, Eng citied that the ministry believes digital assets provide both an alternative fundraising method and a new asset class for savers.
As Cointelegraph stated, the Malaysian government was still unsure whether to legalize digital currency just two days ago.
Still, it has supposedly been clear since November of last year that Malaysia will ratify regulations for cryptocurrency and ICOs in Q1 2019, as Cointelegraph informed at the time.