The Malaysian Securities Commission issued revised guidelines for digital assets effective October 28th. These are intended to regulate the initial offer from stock exchanges and custodian banks for digital assets.
According to SCM The rules aim to “promote responsible innovation in digital assets while managing emerging risks and protecting the interests of issuers and investors”.
As Cointelegraph reported, the SCM first published guidelines for IEOs in January. This established rules that would allow companies to raise funds by issuing tokens only through an approved and registered exchange for digital assets, but these were not due to come into effect until late 2020.
The issuance of these revised guidelines is consistent with your application and adds that IEO platforms must perform due diligence with the issuer.. This includes the responsibility to assess the issuer’s ability to comply with local anti-money laundering and terrorist financing policies.
The guidelines also contain rules for companies that want to offer custody services for digital assets.. Now accepts applications to register as an IEO or DAC provider.
Despite the aim of promoting innovation in space, the guidelines explicitly state:
“Digital currencies and digital tokens are not recognized as legal tender or a tender that is regulated by Bank Negara Malaysia.”
A full copy of the guidelines can be found on the Malaysian Securities Commission website.