The largest digital currency fell as much as 6.2% to US$5,887, the lowest level since June, according to Bloomberg composite pricing
KUALA LUMPUR: The Securities Commission (SC) has ordered all ongoing initial coin offerings (ICOs) to halt their activities and return all monies or digital assets collected from investors.
The regulator issued the warning to the ICOs on Thursday after the rules on cryptocurrenices and digital tokens came into effect on Monday.
The SC said it had received numerous queries on the implementatio of the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019
“With regard to ICOs, no person shall conduct an ICO without the prior authorisation of the SC. In this regard, the guidelines for ICOs will be issued by the end of Q1 2019
In this regard, the SC has invited and engaged with existing digital asset platform operators.
Arrangements have been put in place to facilitate the operations of these platforms for a transitional period until March 1, 2019, subject to them fulfilling the conditions specified by the SC.
“During this period, these platform operators will not be permitted to accept new investors and will only be allowed to facilitate the withdrawal or transfer of client assets with the written instruction of the investor.
“Existing platform operators who failed to or did not attend the engagement with the SC on Jan 17, 2019 are advised to contact the SC immediately and not later than Jan 25, 2019, failing which they shall be deemed to be operating a market in breach of the securities laws,” it said.
It said once the relevant guidelines have been issued, existing platform operators will be required to apply to the SC for authorisation if they intend to operate beyond the transitional period.
Prospective operators can also apply to the SC for authorisation once the guidelines are issued.
The SC will evaluate all applications and will only authorise market operators that fulfil the relevant requirements.
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