Islamic Finance 

Malaysia: BNM, SC enter into digital assets trading agreement

| 06 December, 2018
 NST Business

DECEMBER 6, 2017 | 7:28PM MYT | KUALA LUMPUR

Bank Negara Malaysia (BNM) and The Securities Commissions Malaysia (SC) will enter into a coordination arrangements for the trading of digital assets, namely digital currencies and digital tokens in Malaysia.

The move is to ensure such activities are in compliance with laws and regulations.

This is despite BNM stressing that digital currencies and digital tokens are not legal tender in Malaysia.

In the a joint statement, SC said it 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.

Both agency noted that ICO issuers and digital asset exchanges that 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 SC’s Guidelines on Prevention of Money Laundering and Terrorism Financing (AML/CFT).

The public are advised to carefully evaluate the risks associated with dealings in digital assets.

Copyright New Straits Times

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