Securities Commission Malaysia Publishes Country’s Guidelines On Digital Assets
Securities Commission Malaysia Publishes Country’s Guidelines On Digital Assets
January 20, 2020
Securities Commission Malaysia Publishes Country’s Guidelines On Digital Assets
Securities Commission Malaysia Publishes Country’s Guidelines On Digital Assets
January 20, 2020

The Securities Commission Malaysia (SC) has published the country’s guidelines on digital assets which set out the regulatory framework for token sales.

It has been reported that all token offerings must now be carried out only through platforms approved by the commission. The guidelines also detail the obligations of approved platforms as well as the requirements token issuers must meet.

As the Securities Commission Malaysia announced that it has released the guidelines on digital assets pursuant to section 377 of the Capital Markets and Services Act 2007, the commission explained that the guidelines incorporate feedback it received after issuing the consultation paper on the subject.

The commission added:

“The guidelines set out the requirements for all offerings of digital tokens to be carried out through an initial exchange offering (IEO) platform operator that is registered with the SC.”

These platform operators must seek authorization from the commission and have a minimum paid-up capital of 5,000,000 ringgits ($1.23 million).

ALSO READ :  Australian Securities Exchange Delays Its Transition To The Blockchain Due To Global COVID-19 Pandemic

The announcement details that among other requirements, they must carry out the necessary assessment and due diligence to verify the compliance of the issuer, its board, and the token to be offered.

However, the guidelines also set out the requirements for anyone seeking to raise funds through token offerings.

Likewise, a prospective issuer must satisfy governance and capital requirements to be eligible to raise funds using this method. It must be a company incorporated and have its main business in Malaysia, with a minimum paid-up capital of 500,000 ringgits.

The commission stated:

“Issuers are required to demonstrate that their proposed project or business provides an innovative solution or a meaningful digital value proposition for Malaysia.”

The commission further stated:

“An issuer may raise funds up to a ceiling of RM100 million and tap on investments from retail, sophisticated as well as angel investors, subject to the investment limits provided in the guidelines.”

An offering must be accompanied by a whitepaper furnished to the commission and approved by an approved IEO platform. The whitepaper must contain material information on the issuer, the token, and how the funds are to be used.

ALSO READ :  18 Millionth Bitcoin Mined, BTC Scarcity Implies Large Price Rally

Likewise, the commission explained that it will conduct “post-issuance monitoring of the utilization of the proceeds” after the offering has been completed.

Also, the commission elaborated:

“The guidelines will be brought into force in the second half of 2020 to allow potential issuers, platform operators and investors to familiarise themselves with the requirements in the guidelines … until the coming into force of the guidelines, no person is permitted to offer or issue any digital tokens in Malaysia.”

It has been analyzed that the commission will work with relevant platform operators in assessing eligible issuers during the first phase of implementation of these guidelines.

Thus, it is accepting feedback on the regulatory framework until May 15, 2020, as Malaysia is already regulating the crypto sector and has approved several crypto exchange registrations.

Source: sc.com.my | news.bitcoin.com


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
Share This

Share This

Share this post with your friends!