Malaysia To Release Crypto Regulation In Q1 2019

News, Regulation | November 28, 2018 By:

Malaysian Finance Minister Lim Guan Eng said that regulations for cryptocurrency exchanges and initial coin offerings (ICO) will come into force in the first quarter of 2019.

Speaking at the FinTech Conference 2018 organized by the Malaysian Securities Commission (SC), Lim said that the SC had given him an update that the regulations would be part of the commission’s efforts to facilitate alternative fundraising avenues and new investment asset classes.

“While some parties might still be sceptical of this space, there can be no doubt that we need appropriate regulations to be put in place and enforced to safeguard the interest of investors,” Lim said.

Earlier this month, Fahmi Fadzil, a Member of the Malaysian Parliament representing the People’s Justice Party, urged the the government to wait for Bank Negara Malaysia’s (BNM) cryptocurrency guidelines before introducing the Harapan Coin (HRP), a government-backed political fundraising platform.

In his statement, Lim said that HRP and other crypto-related projects must work within the framework set up by Bank Negara Malaysia and the SC.

“Both Bank Negara and the SC, in terms of formulating this framework will be under the auspices of the Finance Ministry,” Lim said. “The Finance Ministry will lead the committee comprising of Bank Negara, the SC, and the MOF itself.”

The country’s central bank initially planned to issue a directive to regulate the use of cryptocurrencies in early 2018, after several months of preparations. In February, the government implemented a new anti-money laundering (AML) legislation and ordered local crypto exchanges to fully identify traders.