The law on digital currencies and digital tokens of Malaysia will come into force on Tuesday, The Star reports. From this point on, any citizen of a country who will be found guilty of conducting an unregistered Initial Coin Offering(ICO) or organizing a platform for exchanging digital currencies without authorization may face up to 10 years in prison and a fine of $ 245,000.
Malaysian Finance Minister Lim Guan Eng on Monday confirmed the information that the law enters into force on January 15. It is expected that the relevant legal framework will be fully defined before the end of the first quarter.
In accordance with the new law, digital currencies and tokens are considered securities and are regulated by the Securities Commission (SC).
Lim also noted that the financial instruments described in the law and related activities must first be approved by the SC and comply with all established requirements for securities.
In particular, we believe digital assets have a role to play as an alternative fundraising avenue for entrepreneurs and new businesses, and an alternate asset class for investors.
Lim Guan Eng
Finance Minister, Malaysia
According to Lim, SC will now develop regulatory requirements for ICO organizers and trading platform operators.
In November last year, Lim offered to oblige all cryptocurrency issuers in Malaysia to seek advice from the country's central bank.