The Securities Commission Malaysia (SCM) has issued revised guidelines governing digital assets, as these are intended to regulate initial exchange offerings (IEOs) and digital asset custodians.
It has been reported that the rules aim to promote “responsible innovation in the digital asset space, while at the same time managing emerging risks and safeguarding the interests of issuers and investors.”
However, the SCM first published a regulatory guide for IEOs back in January 2020. This laid out rules which enabled companies to raise funds through token issuance only through an approved and registered digital asset exchange, but was not due to come into force until late 2020.
The report said that the issuance of these revised guidelines coincides with their enforcement and adds a requirement for IEO platforms to conduct due diligence on the issuer. This includes a responsibility to assess the issuer’s ability to comply with local guidelines on preventing money laundering and the funding of terrorism.
Guidelines for #IEO and Digital Asset Custodians from @SecComMY come into force today. https://t.co/fH4e1MyZn4 — Cointelegraph (@Cointelegraph) October 28, 2020
Also, the guidelines cover rules for companies wishing to provide custody services for digital assets. Applications for registration as either an IEO provider or a DAC are now being accepted.
The guidelines explicitly stated:
“Digital currencies and digital tokens are not recognized as a legal tender nor as a form of payment instrument that is regulated by Bank Negara Malaysia.”
Thus, a full copy of the guidelines is available on the Malaysia Securities Commission’s website.
Source: Cointelegraph | Image: Business Today