The Securities Commission of Malaysia (SCM) has issued revised digital asset management guidelines, which will take effect on October 28. These guidelines are designed to govern initial transaction offerings (IEO) and digital asset custodians.
According to the SCM, these rules are designed to promote “credible digital asset innovation while managing emerging risks and safeguarding the interests of issuers and investors.”
As reported by Cointelegraph, the SCM first published the IEO regulatory guidelines in January. The standard stipulates that companies can only issue tokens through approved and registered digital asset exchanges to raise funds, but the standard will not take effect until the end of 2020.
The issuance of these revised guidelines is consistent with their implementation, and increases the IEO platform’s requirements for due diligence on issuers. The investigation includes assessing whether the issuer complies with local anti-money laundering and anti-terrorist financing guidelines.
The guidelines also set rules for companies that want to provide custody services for digital assets. Applications to register as an IEO provider or DAC are now being accepted.
Although the standard aims to promote innovation in the digital field, it also clearly states:
“Digital currencies and digital tokens are not recognized as legal tender, nor are they payment methods regulated by Bank Negara Malaysia.”
A complete copy of the guidelines can be found on the Malaysian Securities Commission website.
