SC Finally Discloses its Anticipated Crypto Exchange Regulations

Since Order 2019, Finance Minister Lim Guan Eng has announced the possibility of RM10 million fines and 10 years of jail for those operators involve in digital currency and assets failed to engage with SC.

Fortunately, the uncertainties have been brought to light with the release of the much-anticipated cryptoexchange framework by Securities Commission Malaysia (SC).

This new framework is subject to its Registered Markets Guidelines, which are the same as those used to regulate Equity Crowdfunding and P2P players. The regulator has amended a section according to the same guideline to introduce new crypto-exchange requirements.

New Guideline for Cryptocurrency Exchanges to Operate in Malaysia

1. 5 Million paid capital upon approval and prior to commencement
2. Restriction on providing financial assistance to investors/customers for the purposes of purchasing cryptocurrencies/digital assets
3. A robust risk management system needs to be put in place to ensure a high degree of security and reliability.
4. Cryptocurrencies and digital assets have to be approved by SC prior to listing on the exchange
5. Have clear rules and procedures in place for the trading, clearing and settlement of Digital Assets on the platform
6. Provide clear, concise and fair disclosures that are not misleading to investors
7. To only allow trade to be carried out using Ringgit Malaysia and other legal tenders
8. Establish one or more trust account in a licensed financial institution in Malaysia

*On point No.1 that the minimum paid capital is subject to change on a case by case basis based on the operations and risks posed by the exchange.

Full details of guidelines by Securities Commission Malaysia (SC)

In accordance with the revised guidelines, anyone who wants to operate a digital asset platform should apply for registration by 1 March 2019 at the SC, as an official market operator.

SC Chairman : Datuk Syed Zaid Albar

Datuk Syed Zaid Albar, SC Chairman mentioned that "The new framework for the development of the digital assets is part of the SC's efforts to promote innovation and to ensure investor protection, he also remind investors that to be mindful of the risks when dealing in digital assets such as sudden price fluctuations and liquidity risks."

In the meantime, ICO guidelines have yet to be published and are scheduled for end-March 2019.

The post “SC Finally Discloses its Anticipated Crypto Exchange Regulations" appeared first on FintechNews.my

 

---

Posted from my blog with SteemPress : http://theblocksignal.com/crypto/sc-finally-discloses-its-anticipated-crypto-exchange-regulations/

---