According to the statement published today, the Malaysian Securities Commission will work with the country’s Central Bank to issue a full legal framework on digital assets by end of the Q1 2019.
In the statement, the SC explains that “The guidelines will among others, establish criteria for determining fit and properness of issuers and exchange operators, disclosure standards and best practices in price discovery, trading rules and client asset protection.”
Entities dealing in digital assets will be required to comply with anti-money laundering and counter-terrorism financing (AML / CFT) rules, as well as “cyber security and business continuity measures,” the agency said.
The Finance Minister Lim Guan EngLim added to the above statement:
“We believe digital assets have a role to play as an alternative fundraising avenue for entrepreneurs and new businesses, and an alternate asset class for investors”.
In December 2018, the SC and Bank Negara Malaysia, the country’s central bank, jointly explained that the new regulations are aimed to bring digital assets “within the remit of securities laws to promote fair and orderly trading and ensure investor protection.”