Regulating cryptocurrencies and initial coin offerings remains an ongoing process. In Malaysia, a final verdict may be rendered fairly quickly, however. Local policymakers confirm the rules will go into effect in Q1 of 2019. Exact details regarding this ruleset remain unclear at this time.
Regulating Initial Coin Offerings
Governments around the globe are looking for ways to regulate crypto assets. This pertains to both Bitcoin and altcoins, as well as initial coin offerings. This latter industry has been extremely successful, yet also raises numerous questions. Companies raise millions of dollars, yet do not adhere to existing guidelines. That is a situation which cannot remain in place for much longer.
In Malaysia, regulatory measures will be introduced fairly soon. The first quarter of 2019 will see new guidelines being imposed by the Securities Commission. These rules pertain to both crypto assets and initial coin offerings alike. Based on the current information, it seems no ban will be put in place. Instead, policymakers want to develop alternative financing avenues for businesses.
What the guidelines will entail exactly, remains unclear. Finance Minister Lim Guan Eng has not elaborated on this front further. Safeguarding the interest of investor will be the number one priority at all times. It appears the policymakers are mainly focusing on exchange operators, rather than individual users. This could indicate exchanges will need to make some changes as to how they handle their business.
More Legitimacy for Cryptocurrency
Efforts like these are integral to the cryptocurrency industry. The lack of regulation is widely considered to be one of the main hurdles. Malaysia seems intent on changing that narrative. Their look at initial coin offerings is also a positive development. While successful, that industry has also seen numerous scams and other fake projects over the years.
One thing to keep in mind is how the Malaysian central bank will make the final call. That does not necessarily bode well, albeit it will not necessarily be a hindrance either. Bank Negara strives to have companies consult them first prior to making any crypto-related commitments. It is a safety measure more than anything else. Considering how several dozen exchanges are already registered with the government, no immediate changes are expected.
The developments in Malaysia can trigger more regulatory measures across Asia. Numerous countries in that region seek to legitimize cryptocurrency and initial coin offerings. Once these efforts are kickstarted, the industry will thrive. Cryptocurrencies will benefit from regulatory measures. That is, as long as no bans are imposed. So far, that doesn’t appear to be on the agenda in Malaysia.
What are your thoughts on Malaysia regulating ICOs? Let us know in the comments below.
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