Today, Lim Guan Eng, the Finance Minister of Malaysia, confirmed in a report to a local newspaper that a crypto regulations structure which will include initial coin offerings and cryptocurrency exchanges will be discharged and enacted in the first quarter of 2019.
All-Inclusive Regulatory Framework Ultimately
One year ago, the Central Bank of Malaysia started developing an underlying crypto regulations structure for facilitating the growth of the industry for the digital asset in the country. This would take place without making any compromises with the country’s financial system in any way.
The effort was clarified further in an interview previously held where Lim stated, “We do not wish to disturb cryptocurrency in anyways. We are keeping an open mind in this regard. However, it is still susceptible to the laws that are existing.” Lim further added that any party willing to include cryptocurrency would have to refer to the Malaysian central bank first. The bank is called Bank Negara Malaysia.
As per Guan, the interest of the investors is always a priority, and it requires proper safeguarding, stating, “While there are parties that might be a little apprehensive about this space; there can be absolutely no doubt in the fact that we need the right regulations for safeguarding the interest of the investors.” Lim further pointed out that the regulation is a part of the efforts of the Securities Commission towards boosting the concepts of the new financial alternatives for businesses and the development of the brand new investment digital asset categories.
The Main Objective
Moreover, while having an open mind is the present objective of the parliament in regards to the digital enterprises, the government is even into breaking grounds by way of con-investment funding serving in the form of free financing like peer-to-peer financing (P2P) and equity crowdfunding (ECF) podiums.
Lim said, “We are bent on constant development of optional financing platforms for such businesses going beyond the conventional financing channels.”
The recent blockchain growths that have taken place in Malaysia till date include the educational sector where blockchain is being used for eliminating the instances of digital fraud.