Islamic Finance 

Joint Statement on Regulation of Digital Assets in Malaysia

| 06 December, 2018

Kuala Lumpur, 6 December 2018

This joint press statement is issued by the Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) to provide clarity on the regulatory approach for the offering and trading of digital assets in Malaysia. In this regard, digital assets refer to digital currencies and digital tokens.

The SC will regulate issuances of digital assets via initial coin offerings (ICO) and the trading of digital assets at digital asset exchanges in Malaysia. Regulations are currently being put in place to bring digital assets within the remit of securities laws to promote fair and orderly trading and ensure investor protection.

ICO issuers and digital asset exchanges which are involved in the issuance or dealing of digital assets with a payment function will need to comply with relevant BNM laws and regulations relating to payments and currency matters. In addition, ICO issuers and digital asset exchanges are subject to the SC’s Guidelines on Prevention of Money Laundering and Terrorism Financing.

BNM wishes to reiterate that digital assets are not legal tender in Malaysia. Members of the public are advised to carefully evaluate the risks associated with dealings in digital assets.

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.

SECURITIES COMMISSION MALAYSIA
BANK NEGARA MALAYSIA

Members of the Media may contact Corporate Affairs Department at 03-62048305 (Lau Mei San), 03-62048265 (Delyana Nordin), 03-62048326 (Teoh El Sen) or fax no.: 03-62015078 or e-mail: cau@seccom.com.my.

Background information:

The Securities Commission Malaysia (SC), a statutory body reporting to the Minister of Finance, was established under the Securities Commission Act 1993. It is the sole regulatory agency for the regulation and development of capital markets. SC has direct responsibility for supervising and monitoring the activities of market institutions, including the exchanges and clearing houses, and regulating all persons licensed under the Capital Markets and Services Act 2007. More information about SC is available on its website at www.sc.com.my.

Follow SC on twitter at @SecComMy for more updates.

Like 

MORE INTERESTING TOPICS