- The exchanges have nine months to comply with the local regulatory rules fully.
- The laws regulating the token sales received some criticisms.
The Securities Commission Malaysia (SC) has recently sanctioned three companies to establish and perform digital asset exchange (DAX) in the country. Luno Malaysia Sdn Bhd, SINEGY Technologies (M) Sdn Bhd, and Tokenize Technology (M) Sdn Bhd are the three exchanges who are dubbed as registered market operators (RMOs). The exchanges have nine months to comply with the local regulatory rules fully. David Low, general manager of Southeast Asia at Luno, said:
“We’ve been working closely with regulators and banks to complete the groundwork for the buying, selling and storing of cryptocurrencies and digital assets, which we believe are the future of money. [The] regulation will ultimately bring clarity and protection to consumers, and will ensure that all cryptocurrency businesses have adequate standards in place to protect investors and their funds.”
In January, the SC introduced the Capital Markets and Services Order 2019 followed by the issuance of the revised Guidelines on Recognized Markets, which made it compulsory for the crypto exchanges operating in the country to seek permission from the market regulator. However, the laws regulating the token sales were criticized and were considered to be very strict as any person or entity launching unauthorized ICOs or participating in the exchange of digital goods would be penalized with either ten years imprisonment or a fine of RM 10 million ($2.4 million).
A press report noted:
“DAX operators who have not been approved by the SC are required to cease all activities immediately and return all monies and assets collected from investors. Operating a DAX without authorization from the SC is an offense under securities laws and a person in breach may be liable to a fine or imprisonment term or both.”
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