The Securities Commission Malaysia (SC) has released a media statement on the implementation of the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 on January 15,.
SC has received numerous queries on the implementation of the Order and has engaged with existing digital asset platform operators.
Arrangements have been put in place to facilitate the operations of these platforms for a transitional period until March 1, subject to them fulfilling the conditions specified by the SC.
During this period, these platform operators will not be permitted to accept new investors and will only be allowed to facilitate the withdrawal or transfer of client assets with the written instruction of the investor.
Existing platform operators who failed to or did not attend the engagement with the SC on January 17 are advised to contact the SC immediately and not later than January 25, failing which they shall be deemed to be operating a market in breach of the securities laws.
Once the relevant guidelines have been issued, existing platform operators will be required to apply to the SC for authorisation if they intend to operate beyond the transitional period.
Prospective operators can also apply to the SC for authorisation once the guidelines are issued.
The SC will evaluate all applications and will only authorise market operators that fulfil the relevant requirements.
With regard to initial coin offerings (ICOs), no person shall conduct an ICO without the prior authorisation of the SC.
In this regard, the guidelines for ICOs will be issued by the end of Q1 2019.
In the meantime, ongoing ICOs should cease all activities and return all monies or digital assets collected from investors.