SC, BNM advise caution over unauthorised ICO activities

The US Securities and Exchange Commission wants more time to review whether the proposed funds actually comply with securities laws. - Bloomberg

KUALA LUMPUR: Securities Commission Malaysia and Bank Negara Malaysia have issued a joint statement warning the public about initial coin offering (ICO) schemes that involve activities requiring authorisation by the governing bodies.

"Issuers of ICOs should be mindful that the launching of an ICO, the offering of digital tokens in exchange for digital currency or any form of payment and incidental activities thereof, may trigger regulatory requirements under securities laws.

"In addition, no person is permitted to carry out any regulated activities such as fundraising, fund management and dealing in capital market products without obtaining necessary approval or authorisation from the SC.

"Further, ICO operators are prohibited from undertaking regulated activities such as deposit taking and banking business, foreign exchange administration activities and remittances, without the necessary authorisation under financial services laws administered by BNM.

The statement further reminded the public to exercise caution before participating in an ICO and are advised to refer to the list of institutions that are licensed or approved to carry our regulated activities.

"Both authorities will continue to monitor these developments, and will not hesitate to take action against any person conducting illegal or unauthorised activities."