The Securities Commission Malaysia (SC) guidelines on the regulation of various digital currency platforms operating in the country have come into effect today, the regulator announced.
The Malaysian watchdog first released these guidelines in January, proposing many rules for the initial exchange offerings (IEO) and digital asset custodians (DACs). It mandated digital token offerings in the country only via IEO.
“IEO platform operators will be required to assess and conduct the necessary due diligence on the issuer, review the issuer’s proposal and the disclosures in the whitepaper, and assess the issuer’s ability to comply with the requirements of the Guidelines and the SC’s Guidelines on Prevention of Money Laundering and Terrorism Financing,” the SC noted.
Restrictions on Token Sale
As reported by Finance Magnates earlier, the guidelines brought many other restrictions on initial coin offerings (ICOs) as well. A ceiling of RM100 million (around $24.5 million) will be applicable to ICOs.
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However, the blockchain companies can raise further funds other than the token offering techniques from angel or institutional investors.
Furthermore, all IEO platforms operating in Malaysia need to register themselves with the regulator.
“The SC would like to remind members of the public that they are not permitted to offer, issue or distribute any digital assets in Malaysia without obtaining a registration or authorization from the SC,” the regulator warned.
“Any person found to be operating a digital exchange or offering or distributing any digital assets without the SC’s authorization commits an offense and may be liable, on conviction, to a fine not exceeding ten million ringgit or imprisonment for a term not exceeding ten years or both.”