Business 7 November 2017Ed Drake
Malaysian securities regulator reviewing fresh cryptocurrency laws
The Malaysian securities regulator has become the latest market regulator to move towards a new legal framework for cryptocurrencies.
The news comes with the announcement this week from the Securities Commission Malaysia, disclosing advanced preparations for fresh “regulations and guidelines” in a number of recognised use cases for cryptocurrencies and other digital assets.
In close partnership with Bank Negara Malaysia, the Malaysian central bank, the regulatory provisions could also include guidelines for a ‘secondary market’ in crypto assets, a crucial step to giving legal legitimacy to cryptocurrency exchange transactions.
According to Securities Commission Malaysia chairman Tan Sri Ranjit Ajit Singh, the regulator expects to finalise proposals over the coming months, paving the way for new legislation.
“Together with BNM, we will look at the area carefully and as SC is in charge of the secondary market, we would craft regulations to ensure that the trading values have the right conditions in place for market integrity and investor projection purposes”.
He continued by explaining that a number of cryptocurrency exchanges had already come forward with proposals to offer exchange in the Malaysian market, and registration would be subject to the finalisation of the new legal structure.
Beyond their work in developing laws in this area, Singh also pointed to the Commission’s efforts to introduce distributed ledger technology for processing OTC and unlisted securities transactions.
The proposals were suggested at the SCxSC Digital Finance Conference, an event held in Kuala Lumpur this week, as part of talks to introduce further innovation through new technologies in Malaysia’s capital markets.
The developments come at a time of increasing activity amongst securities regulators worldwide, faced with responding to the challenges of these new emerging technologies and markets.
Representing a departure from their previously more cautious approach, Malaysian authorities had suggested last month that moves to ban cryptocurrencies could be brought forward as early as the end of 2017.
The proposals are not yet confirmed, but are expected to be fully detailed over the course of the next few months. While there remains some uncertainty over the long-term position, the move will bring clarity at a time when regulators around the world are testing alternative approaches to these issues.
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.
Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.
Business 1 hour ago
Blockchain, Brexit, and Ireland: What will happen?
The economic uncertainty has led many to believe that cryptocurrency might be able to play a role, since traditional currencies might not be able to stabilize through the crisis.
Business 1 hour ago
Cryptopia outlines eventual return as exchange resumes trading
Co-founder Rob Dawson categorically denies that an exit scam took place, and points out that Cryptopia actually plans on reopening. For now, the crypto exchange has resumed trading on 40 various crypto trading pairs.
Business 2 hours ago
Galaxy Digital invests $5.25 million in Bison Trails
After investing his clients money at the worst possible time, Stefanos Papanastasiou is being sued for losing most of the money.