Digital assets to be regulated as recognised market

In a statement issued yesterday, the SC said the Cabinet Special Committee on Anti-Corruption (JKKMAR) had approved its recommendation to require listed companies to put in place anti-corruption measures and a framework to promote the effective discharge of directors

KUALA LUMPUR: The digital assets platform will now be regulated as a recognised market, which will put it on the same level as equity crowdfunding (ECF) and peer-to-peer financing (P2P).

The Securities Commission (SC) has amended its Guidelines on Recognised Markets to introduce new requirements for electronic platforms that facilitate the trading of digital assets.

Under the revised guidelines, any person interested in operating a digital asset platform will be required to apply to the SC to be registered as a recognised market operator.

SC chairman Datuk Syed Zaid Albar said the new framework is part of the regulator’s effort to promote innovation while ensuring investor protection in the trading of digital assets.

“While there is a framework to facilitate the trading of digital assets, investors are reminded to be mindful of the risks when dealing in digital assets such as sudden price fluctuations and liquidity risks,” he said.

Those interested to operate a digital asset platform, including those operating within the current transitional period, have to submit an application to the SC by March 1.

The amended guidelines, which included a new chapter on digital asset platform, is now available on the SC website. 

Queries can be directed to [e-mail].

Meanwhile, separate guidelines will be issued on the offering of digital assets via an initial coin offering (ICO) by the end of March.

On Jan 17, the SC called for ongoing ICOs to cease all activities and return all monies or digital assets collected from investors.

No one shall conduct an ICO without the prior authorisation of the SC.

Those found offering an ICO or operating a digital asset exchange without the SC’s approval will face an imprisonment term not exceeding 10 years and a fine not exceeding RM10mil.