The Securities Commission of Malaysia said the move was designed to support “responsible innovation in the digital asset space.”
U.S. cryptocurrency exchange Coinbase intends to launch an initial exchange offering (IEO) platform in less than a year’s time.
The study, conducted by TeqAtlas, revealed that token generation events continue to be the favored funding method.
Exchanges facilitating IEOs could fall within the definition of a ”securities dealer” in the event the issuer or investors are based in the United States, the regulator warns.
Troubled cryptocurrency exchange Bitfinex has published the whitepaper for its Initial Exchange Offering, confirming plans to raise up to $1 billion from the token issue.
Dong Zhao, a shareholder with Bitfinex, has suggested that the crypto exchange could be planning to launch an exchange-based token in the wake of the Tether scandal.
A number of cryptocurrency commentators have criticized the growing trend for Initial Exchange Offerings, or IEOs, as an alternative to the discredited ICO model.