The Malaysian Central Bank And the securities regulator have reasoned to work together for the proper implementation of the regulatory framework for cryptocurrencies and ICO tokens.
Securities Commission and Bank Negara to be the supervisors
In a joint statement, Securities Commission Malaysia and Malaysian Central Bank disclosed that this preparation will be constrained to ensure compliance only with the regulations and laws that fall under the supervising 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.
Both, the Initial Coin Offering and the cryptocurrency trading and the current laws pertaining to it in the country are being moderated with a focus to bring digital assets under the existing securities laws in order. This shall promote order in the functioning through fair and orderly trading and provide protection to the interest of the investors too.
Guidelines for ICOs and Exchanges
The ones issuing ICOs and cryptocurrency exchanges will have to ensure compliance with the ‘Guidelines on Prevention of Money Laundering and Terrorism Financing’ set by the Securities Commission. The expected regulations shall require the cryptocurrency exchanges and the issuers of ICOs dealing or trading with the cryptocurrencies to ensure compliance with the Central Bank’s law and regulation.
Although Malaysia has pro cryptocurrency stance, the central bank made its point clear through a statement that emphasized over digital assets being not a legal tender in Malaysia. Malaysian Finance Minister, Lim Guan Eng, clearly mentioned that the regulations to safeguard the investors’ interest will be implemented in the first quarter of the year 2019.
He also suggested that “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”.
With a final caution, he stated that “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”.