Malaysia make amendments to introduce law for crypto exchanges

Malaysia’s financial regulator the Securities Commission (SC) has published amendments to their rules regarding “recognized markets” in specific, with new amendments introducing laws for crypto exchanges. The SC also released a statement saying that firms wishing to operate in the country must be registered with the SC before March this year.

Further regulations also included that the firms must have a corporate structure with their executives having a clean criminal record. Moreover, these executives must have a reasonable amount of experience in traditional markets.

Furthermore, these platforms must prove that they are taking quality measures to provide utmost protection of the investor funds. The agency stated that only the companies that are beneficial to the digital economy of the nation would be allowed to conduct business in the country.

Meanwhile, these companies are trying to get the approval of SC they are unable to open new accounts, i.e., the firms are in a transitional phase. An official from the SC stated that these new guidelines are an effort for increasing ‘innovation’ while making sure the trust and the funds of the investors are protected.

Previously, the country’s finance minister indicated that crypto exchanges, as well as ICOs, will be regulated at the start of 2019. However, the recent announcement by SC includes no regulations relating to ICOs.

In the start of 2019, regulators stated that the ICO laws might cover regulations relating to the white paper and therefore would conform to the same standards as IPO prospectuses.

Malaysia is accompanied by few other Southeast Asian nations in developing the framework for cryptos. Thailand released its crypto regulations back in 2018 and recently approved four firms in conducting business there.