Recently, Finance Minister Lim Guan Eng announced that effective from 15th January 2019, the Securities Commission Malaysia will regulate digital assets as prescribed securities, and anyone offering an Initial Coin Offering (ICO) or operating a digital asset exchange without SC’s approval may face a jail sentence up to 10 years and a fine not exceeding RM10 million.

We explained it few days ago under the What is Harapan Coin? article. That regulation is known as The Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019.

Here we have Malaysia Digital Economy Corporation (MDEC)’s commentary on ICO regulations:

MDEC welcomes the move by the Ministry of Finance to regulate any form of digital asset exchanges or initial coin offerings, which is bringing much needed clarity to this nascent space. Furthermore, this progressive view of the potential of the blockchain industry is aligned with the Malaysia’s Industry 4.0 aspirations, and will encourage an additional fundraising channel for entrepreneurs and new businesses. Malaysia has a positive opportunity to be competitive globally in the blockchain space, and MDEC looks forward to working closely with Ministry of Finance, Securities Commission and other relevant bodies, to help shape the comprehensive regulations and guidelines to be released by end Q1 2019 as this will provide greater clarity to the industry especially on the definition of digital assets.