Malaysia will regulate initial coin offerings (ICOs) and cryptocurrencies by classifying digital assets as “securities,” according to finance minister Lim Guan Eng, who is quoted in Reuters.
The minister revealed that as of January 15th, digital currencies and tokens will be considered as securities under the regulation of the Securities Commission Malaysia.
The move could have repercussions for cryptocurrency traders in the country, who will now have to abide by securities law as well as other complex issues tied to trading digital assets.
The Malaysian regulator is expected to launch a framework by the end of the first quarter, allowing time for “the relevant regulatory requirements for the issuance of ICOs and the trading of digital assets at digital asset exchanges in Malaysia.”
JUST IN: Malaysia’s finance minister says will regulate initial coin offerings and trade of cryptocurrencies pic.twitter.com/QTDfOX6JiV
— Reuters Business (@ReutersBiz) January 14, 2019
In spite of the upcoming wave of regulation, Eng spoke positively in regards to digital assets, with local outlet The Star reporting: “The Ministry of Finance views digital assets, as well as its underlying blockchain technologies, as having the potential to bring about innovation in both old and new industries.”
Regulation of cryptocurrencies is expected to be an ongoing narrative in 2019. America’s regulator, the SEC, began their wave of clamping down on cryptocurrencies in late 2018, issuing penalties to the likes of Airfox, Paragon, and Ether Delta founder Zachary Coburn.
However, the ongoing US government shutdown has halted the wave of cryptocurrency regulation. The SEC are expected to reveal their decision for VanEck and SolidX ETF approvals by the end of February, which could act as a catalyst for a bullish reversal in price.
For more news, guides, and cryptocurrency analysis, click here.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.