Unauthorized Crypto Exchanges in Malaysia Will Carry a Jail Sentence
Malaysia will officially regulate initial coin offerings (ICOs) and the overall trade of cryptocurrencies. The law which introduces the regulations will come into force on Tuesday, January 15th.
Malaysia Regulates ICOs and Cryptocurrency Trade
According to a Reuters report, Malaysia will regulate ICOs and the trade of cryptocurrencies.
Citing the country’s Finance Minister, the report outlines that digital currencies and digital tokens will be classified as securities, putting them under the regulatory purview of the Securities Commission of Malaysia.
In turn, the commission is expected to introduce a regulatory framework by the end of Q1 2019. It needs to define the requirements for the issuance of ICOs, as well as the process of trading digital currencies on cryptocurrency exchanges in the country.
Back in November, Live Bitcoin News reported that the country was supposed to regulate ICOs in the first quarter of 2019.
Speaking on the matter, the Finance Minister of Malaysia said:
In particular, we believe digital assets have a role to play as an alternative fundraising avenue for entrepreneurs and new businesses and an alternative asset class for investors.
Increased Regulatory Scrutiny
While the framework is yet to be put in place, after the law on digital currencies and digital tokens come into effect on January 15th, the industry will have to consider the increased scrutiny of the country’s Securities Commission.
According to a local media TheStar, failing to comply with the new regulations can result in a 10-year jail sentence and a fine of up to RM 10 million.
The law on digital currencies and digital tokens will come into effect on Tuesday and any person operating unauthorized initial coin offerings (ICOs) or digital asset exchange faces a 10-year jail and RM10mil fine. – reads the report.
What do you think about the new regulations introduced in Malaysia? Don’t hesitate to let us know in the comments below!
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