Eternity Law International News Regulation of cryptocurrencies in Malaysia

Regulation of cryptocurrencies in Malaysia

January 28, 2020

In Malaysia, on January 15, the norms of a bill describing digital assets – cryptocurrencies – began to operate. This became known thanks to The Star. The publication appeared on January 14th.

According to the text of the bill, citizens noticed in the unregistered distribution of cryptocurrencies through ICO, as well as in the creation of a platform for exchanging cryptocurrencies that does not require registration, face 10 years in prison and fines of $ 245,000.

According to Finance Minister Lim Guang Eng, the law will have to be implemented by all Malaysian citizens from the middle of the first winter month. Legal standards will be 100% formulated by the end of March this year.

The law also states that cryptocurrencies are the same securities. This means that their movement is under the control of the Commission (SC), which oversees the securities.

Lim drew the attention of journalists to the fact that the financial instruments set out in the bill and the operations for which the use of these instruments is required mandatory approval from the Commission.

The same standards are put forward for financial instruments that are in effect today for securities.

The minister argues that digital assets, together with the blockchain technology are able to transform and rehabilitate outdated industries that require renewal.

However, new areas are also subject to this procedure. Cryptocurrency is expected to be a viable alternative. And it will attract the cash needed by businesses and new ventures.

The category of assets for those who are engaged in investing will not remain aside.

Lim is confident that SC specialists will cope with the development of control rules applicable to organizers of trading floors and operators offering to use their services.

November 2018 in Malaysia was marked by an equally important event. Lim put forward a proposal to oblige issuers of digital currencies to consult with the country’s Central Bank. To get the consultation.

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