KUALA LUMPUR: The Securities Commission Malaysia (SC) has published the Guidelines on Digital Assets on Wednesday, as the country seeks to regulate the issuance of digital tokens for fundraising.
The framework, which will come into force in the second half of 2020, allows businesses to raise capital up to RM100mil without selling their equity or undertaking debt.
The fundraising will be done through Initial Exchange Offerings (IEO) on SC-registered electronic platforms.
Companies with “an innovative solution or a meaningful digital value proposition” and a minimum paid-up capital of RM500,000 are allowed to issue digital tokens through IEOs.
While public listed companies are not allowed to participate in IEOs, they can do so indirectly via a new subsidiary or a special purpose vehicle.
SC chairman Datuk Syed Zaid Albar said in a statement yesterday that digital tokens offering provides yet another alternative fundraising avenue for early stage entrepreneurs.
“This initiative supports Malaysia’s Shared Prosperity Vision 2030 (SPV2030) by supporting the growth of small and medium enterprises and micro businesses which are targeted to contribute 50% to Malaysia’s gross domestic product.
“It also aligned with SPV2030’s aspiration to create 30% high technology Malaysian companies, ” he said.
Investments by retail investors are limited to RM2,000 per offering and a total of RM20,000 annually. Meanwhile, angel investors could invest in digital tokens up to RM500,000 per year.
On the other hand, there are no limits for sophisticated investors.
The public can access the Guidelines on Digital Assets on the link below:
Digital Assets Guidelines
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