There has been a lot of speculation recently on what stand Malaysia is going to take as far as cryptocurrency and digital exchange setup is concerned.
On 14th Jan 2019, Securities Commission Malaysia (SC) put up a post on their website following the statement by YB Lim Guan Eng (Minister of Finance) on the coming into force of the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019, the Securities Commission Malaysia (SC) will put in place guidelines to regulate offering and trading of digital assets.
The guidelines will among others, establish criteria for determining fit and properness of issuers and exchange operators, disclosure standards and best practices in price discovery, trading rules and client asset protection. Those dealing in digital assets will be required to put in place anti-money laundering and counter-terrorism financing (AML / CFT) rules, cyber security and business continuity measures.
“So basically, what the guidelines is intending to do is to wade off bad actors and maintain some law and order in the country. With the coming into force of the Prescription Order, the offering of digital assets, as well as its associated activities, will require authorisation from the SC and compliance with relevant securities laws and regulations.”