According to a press release dated June 4, the Securities Commission (SC of Malaysia) registers three cryptocurrency exchanges Luno Malaysian, Sinegy Technologies, and Tokenize Technology. They are allowed up to nine months to comply with the SC’s regulation standards.
According to reports, Crypto exchanges operating in the country must register with the SC and then get approvals. Luna stated that these three exchanges are the only ones who have registered digital asset exchanges in Malaysia. Luno’s General Manager for Southeast Asia David Low stated:
“We have been closely working with banks and regulators to prepare for the purchase, sale, and storage of digital assets and cryptocurrencies. These are our future money. The regulation will eventually bring clarity and protection to consumers and ensure that all cryptocurrency businesses are subject to the same standards to protect investors as well as their funds.
The SC presented the Capital Markets and Services Order 2019 (Prescription of Securities, Digital Currency and Digital Token) on January 15. It was quickly followed by the revised Guidelines for Recognized Markets on Jan 31.
According to the January 15 service order, cryptocurrencies are now considered securities. They now fall within the legal purview of the SC. Since then, the SC has published two papers addressed to the public. One of its agenda items is gathering feedback on proposed regulations relating to initial coin offerings (ICO).
The Canadian Securities Administrators took a similar action as the Investment Industry Regulatory Organization of Canada. Although they released the documents for public feedback, the proposed regulations for cryptocurrency received heavy criticism from Kraken, a major Canadian exchange.
The main objection of the exchange was that neither cryptocurrencies nor agreements between users and exchanges constitute securities.
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