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Initial Exchange Offerings and Digital Assets Custodians get new guidelines in Malaysia

Ripple CEO

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TL;DR

  • Malaysia’s Initial exchange offerings have their policies reviewed
  • SC also reviews the rules and regulations guiding Digital custodians.

Authorities in Malaysia have chosen to amend the legal framework that deals with the acceptance, adoption, and regulation of Initial Exchange Offerings (IEO) in the Asian country.

Malaysian’s Securities Commission (SC) has worked on revising the framework that deals with crypto digital innovations in the country so that it can keep up with the agency aim of making sure that the government keeps supporting digital innovation in the crypto industry and also providing an enabling environment for the growth and development of the sector.

The agency notes that while it seeks to promote the industry’s general growth, it will not overlook another of its goals, which involves managing risk and ensuring the interests of market players in the industry remain protected.

Through a guide it released earlier in the year, the commission stated how Malaysia’s firms could seek to raise funds and capital. The agency said the firms could issue a token through an Initial exchange offering platform that must have been registered with the financial regulatory agency

This new guide gives the registered Initial Exchange Offering Platform the right to investigate firms looking to issue such digital tokens. The investigation would include carrying out a thorough investigation of the firm’s ability and also reviewing the issued token’s white paper. 

Not only that, the platform also has to ascertain if the issuer can abide with SC’s law regarding issues of Money Laundering and Terrorism Financing.

SC reviews not only Initial Exchange Offering guidelines but also that of Digital Custodians

Malaysian authority did not only review the guideline for the Initial Exchange Offering platform; the agency also reviewed the rules and regulations guarding the operations of Digital Assets Custodians (DAC) in the country.

The commission recognizes the invaluable role Digital Custodians play in the industry and has mandated that bodies interested in providing these services in the country have to seek to protect investors’ investments.

The commission announced that all questions, inquiries, and applications should be directed to a specified mail “[email protected]” dedicated towards that sole purpose.

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Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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