Securities Commission Malaysia (SC) released the revised Guidelines on Digital Assets to regulate Initial Exchange Offerings (IEO) and Digital Asset Custodians (DAC).
The revised guideline effective immediately from its release on Wednesday. SC is aiming to promote responsible innovation through digital assets. It is also to manage risks and safeguard players and investors in the industry.
SC is also accepting applications for interested parties in facilitating as IEO or DAC. IEO will enable companies to raise funds via the issuance of digital tokens in Malaysia. DAC will allow companies to be custodians for digital assets to ensure investors’ funds are safe.
The deadline for the application of IEO platform operators is 15 February 2021.
In Malaysia, any companies wish to operate Digital Asset Exchange (DAX), IEO, and DAC will have to get approval from SC. According to SC, failing to comply and committing offenses will be liable upon conviction to a fine not exceeding RM10 million, or imprisonment not exceeding ten years, or both.
The full guidelines can be accessed from SC’s website here.
With the guidelines and regulations are in place, it will open up new opportunities and promoting digital assets in Malaysia for the coming years.