Malaysian crypto regulation’s comes into effect on Tuesday, Reuters ‘reported‘ on 14th Jan. The Malaysian financial minister, Lim Guan Eng, reportedly stated that the Capital Markets and Services Order 2019 would become effective on 15th Jan. As per Reuters, the new regulation classifies digital currencies, tokens and crypto-assets as securities, classifying them underneath the Securities Commission’s authority.
Starting from Tuesday, anyone operating unauthorized ICOs [initial coin offerings] or digital asset exchanges in Malaysia would be reportedly facing ten year jail sentence and upto $2.4 Mln in USD as fine.
In line with Malaysian news outlet The Star, Eng noted the positive outlook of the Ministry of Finance on the cryptocurrency trade, ‘stating‘:
“The Ministry of Finance views digital assets, along with its underlying blockchain technologies, as having the potential to bring about innovation in both old and new industries.”
Namely, Eng noted that the ministry believes digital assets provide both an alternative fundraising technique and a new asset category for investors.
As reported earlier, the Malaysian govt. was still undecided whether or not to legitimise cryptocurrencies just 2 days earlier.
Still, it’s reportedly been clear since Nov. last year that Malaysia would enact ‘laws for cryptocurrency‘ and ICOs in Q1 of 2019.