íàçâàíèå

Malaysia’s Central Bank, Securities Regulator to Coordinate for Crypto Regulation

Malaysia’s Central Bank, Securities Regulator to Coordinate for Crypto Regulation

The Malaysian central bank and the securities regulator have indicated that they will collaborate in implementing a regulatory framework for cryptocurrencies and ICO tokens.

In a joint statement, Securities Commission Malaysia and Bank Negara Malaysia disclosed that this arrangement will be restricted to ensuring compliance only with the regulations and laws that fall under the oversight authority of the two regulators.

“In order to implement the regulatory framework on digital assets, the SC and BNM will enter into coordination arrangements to ensure compliance with laws and regulations under the purview of both regulators,” said the media release.

ICOs Deemed Securities

The Securities Commission will regulate Initial Coin Offerings as well as cryptocurrency trading in the country and the relevant legislation is currently being worked on with a view of bringing digital assets under the existing securities laws in order to protect investors and promote fair and orderly trading.

The expected regulations will require cryptocurrency exchanges and issuers of ICOs involved or dealing with digital assets that possess a payment function to ensure compliance with the central bank’s laws and regulations. Issuers of ICOs and cryptocurrency exchanges will also have to ensure compliance with the ‘Guidelines on Prevention of Money Laundering and Terrorism Financing’ set by the Securities Commission.

While the Southeast Asian country generally has a pro-cryptocurrency stance, the central bank made clear in the joint statement that ‘digital assets are not legal tender in Malaysia’.

Regulations Coming in Q1

This comes a little over a week since Malaysia’s finance minister, Lim Guan Eng, stated that cryptocurrency regulations, aimed at safeguarding investor interests, will be enforced in the first quarter of next year.

Though not explicitly stated, Lim hinted then that the country’s central bank and the securities regulator would partner in formulating a regulatory framework for ICO tokens and cryptocurrencies under the leadership of the finance ministry:

“Both Bank Negara and the SC, in terms of formulating this framework will be under the auspices of the Finance Ministry. The Finance Ministry will lead the committee comprising of Bank Negara, the SC, and the MOF itself.”

Late last month, the finance minister had advised that only the central bank has the authority to determine the fate of anyone intending to issue cryptocurrencies.

“This is where I wish to advise all parties, no matter who they are, intending to issue bitcoins or cryptocurrency, that they must refer to Bank Negara which is the authority that will have the final say on this new form of currency,” CCN reported Lim as having said.

Featured image from Shutterstock.


07.12.2018 / 03:15 21
Malaysia Set to Enforce Cryptocurrency Regulations in Q1 2019, Says Finance Minister Malaysia Set to Enforce Cryptocurrency
Malaysias Finance Minister announced that the country would enforce regulations for cryptocurrency exchanges and ICOs in the Q1 2019. Cryptocurrency
Malaysia’s Finance Minister: Crypto Regulation to be Enforced in Q1 2019 Malaysia’s Finance Minister: Crypto
CCN is expanding. Are you our next full-time journalist from the West Coast USA? Send us your CV and examples here. Malaysian Finance Minister Lim
Central Bank has Final Say on Cryptocurrency Issuance: Malaysia’s Finance Minister Central Bank has Final Say on
Malaysia has indicated that the country’s central bank has the last word regarding the introduction of new cryptocurrencies. According to the
Abu Dhabi Regulator: Institutional Investors Will Bring Stability to Crypto Abu Dhabi Regulator: Institutional
The head of Abu Dhabis Financial Services Regulatory Authority (FSRA), Richard Teng, told attendees of Fintech Abu Dhabi that greater regulatory
Singapore Warns 8 Crypto Exchanges Against Unauthorized Securities Trading Singapore Warns 8 Crypto Exchanges
Singapore’s central bank and financial regulator has warned eight crypto exchanges against facilitating the trading of digital tokens deemed as
Malaysia’s Central Bank Slaps Down ICO for Logo Misuse Malaysia’s Central Bank Slaps Down ICO
Malaysia’s central bank has issued a statement seeking to warn customers and distance itself from the Coinzer cryptocurrency. Bank Negara Malaysia’s
Comments (0)
Add a comment
Comment on