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ICOs Now Illegal in Malaysia

ICOs Now Illegal in Malaysia

ICOs Now Illegal In Malaysia-techcryption

Initial Coin Offerings (ICOs) are now banned in Malaysia. The country’s Security Commission (SC) has published a guideline for crypto initial exchange offerings (IEOs) while ICO by individual token issuers will no longer be permitted.

Reportedly, digital token offerings will be done via IEOs which are the same as ICOs, just that it is done through crypto exchange instead of the token issuer themselves. This new guideline is said to be executed in the second quarter this year.

In addition to that, IEO platforms will be required to carry out the necessary assessment and due diligence on the issuers as well as the features of the digital tokens, and a minimum paid-up capital of RM 5 million and must be locally incorporated unless specified otherwise by the regulators.

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On the other hand, digital token issuers are required to have its main business carried out locally with at least two directors residing in Malaysia and a minimum of RM 500,000 paid-up capital. The guideline also specifies that the underlying project and business most provide an innovative solution or a meaningful digital value proposition for Malaysia.

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