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Initial Coin Offering (ICO): Malaysian Regulators Issue Cautionary Statement on Initial Coin Offerings

Updated:2018-1-22 10:05:29    Source:www.tannet-group.comViews:236

It is reported that Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) issued a cautionary statement warning the public about initial coin offering (ICO) schemes.

In a joint statement, the regulators said, issuers of ICOs should be mindful that the launching of an ICO, the offering of digital tokens in exchange for digital currency or any form of payment and incidental activities thereof, may trigger regulatory requirements under securities laws.

Besides, no person is permitted to carry out any regulated activities such as fundraising, fund management and dealing in capital market products without obtaining necessary approval or authorization from the SC, it added.

The regulators also said, ICO operators are prohibited from undertaking regulated activities such as deposit taking and banking business, foreign exchange administration activities and remittances, without the necessary authorization under financial services laws administered by BNM.

"Members of the public are reminded to exercise caution before participating in an ICO and are advised to refer to the list of institutions that are licensed or approved to carry out regulated activities under the laws administered by the SC and BNM," said the statement.

Both authorities will continue to monitor these developments, and will not hesitate to take action against any person conducting illegal or unauthorized activities, it added.

The statement was released amid rising regulatory pressure on cryptocurrencies such as bitcoin, which experienced a major sell-off in recent days with its price tanking to the lowest within a year. It is reported that South Korean authorities are considering banning the trade of such cryptocurrencies. (Source: Xinhua News)

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