Securities Commission, Bank Negara working on rules for digital currencies

KUALA LUMPUR: Regulations are currently being put in place to bring digital assets within the remit of securities law to promote fair and orderly trading and ensure investor protection, the Securities Commission (SC) and Bank Negara Malaysia (BNM) said today.

The SC will regulate the issuance of digital assets via initial coin offerings (ICO) and the trading of digital assets at digital asset exchanges in Malaysia.

Digital assets refer to digital currencies and digital tokens.

“ICO issuers and digital asset exchanges which are involved in the issuance or dealing of digital assets with a payment function will need to comply with relevant BNM laws and regulations relating to payments and currency matters,” SC and BNM said in a joint statement today.

In addition, ICO issuers and digital asset exchanges are subject to SC’s Guidelines on Prevention of Money Laundering and Terrorism Financing.

BNM reiterated that digital assets were not legal tender in Malaysia.

Members of the public are advised to carefully evaluate the risks associated with dealings in digital assets.

In order to implement the regulatory framework on digital assets, the SC and BNM would enter into coordination arrangements to ensure compliance with laws and regulations under the purview of both regulators, said the statement.