Malaysian Regulator And Central Bank To Create Crypto Regulation

Crypto regulation was an important issue in 2018. As the market boomed in 2017 and developed afterward, it was important to define rules and legislation for it. Many countries are now taking their time to draft the regulation and Malaysia is one of these countries. Malaysia’s Securities Commission and the Bank Negata Malaysia have now sent a joint statement to the media talking of regulation.

According to their joint statement, the two entities are set to “put in place” crypto regulation and legislation, which also means that Initial Coin Offerings (ICOs) will be regulated in the country. Regulation is expected for the first quarter of next year.

Sometimes the companies will have to comply with the Securities Law of the country in some cases and others will not. The securities agency will regulate the issuance of digital assets and Initial Coin Offerings (ICOs), as well as the trading of tokens.

The entities have affirmed that they bring digital assets to the existing securities laws and that this will help to put some order in how things are happening in the country. The slow formalization of the market will end up being good in the long-term as the finance minister of the country, Lim Guan Eng, has already affirmed that people could only make ICOs and issue new tokens with the permission from the ministry.

This could prove to be very beneficial as it centralized the issuance of assets in the country, which curbs scams. There are a lot of international decentralized tokens, so this measure from a small country would hardly hurt them, only stopping fraudulent companies from harming investors.

Malaysia is currently following Thailand, which has made a move to regulate cryptos about six months ago.

It is important to notice that while there is a lot of ambiguity in the world about whether ICOs are sales of securities or not, the main argument here is that they truly are. While would help the country because they will not need to draft a lot of new laws and could use the existing security ones, it can also be sort of troublesome as they are not considered commodities as they will be in many markets.

In any case, any regulation is better than none, as the crypto market has been facing a huge influx of scammers and the investors need some protection.

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