Malaysia Gets Cozier With Bitcoin, Announces New Crypto Regulation Requirements For Exchanges
The regulators of Malaysia are certainly doing their jobs as they have come up with a brand new regulation for crypto exchanges in the country. Malaysia’s Securities Commission has announced yesterday, January 31, that it would amend its Guidelines on Recognized Markets in order to include cryptocurrency exchanges as well in the list.
After amending the regulation, the entity has affirmed that all companies that want to be legal in the country have until March 1, 2019, to register with the regulator to set up all the proper documentation.
What Changes Now In Malaysia?
According to the new regulation, Bitcoin exchanges will have to follow stricter rules than they have been doing so far. First, they must conform to a corporate organization structure with top executives that have fully clean criminal records. Not only that, but proven trading skills are also a must.
All companies need to show proof that they have good security measures as well and only the ones who pass all the requirements and are deemed worthy of “contributing to the digital economy” of the country will receive the licenses to operate.
This will start a brief transitional period in the country. All changes will be forbidden to offer their services to new customers during this time, as they will be reviewed and the ones that do not pass on the test will have to cease their operations while they are unable to get a license.
The Malaysian Securities Commission president, Datuk Syed Zaid Albar, has affirmed that the framework will be very important to ensure that the industry is protected and to promote innovation in the country at the same time that the bad actors are weeded out.
ICO Regulation Is Still Coming In The Future
While the regulators should be praised for their achievement on starting to solve the lack of crypto regulation in the country, there is plenty to be done yet. Regulation for Initial Coin Offerings (ICOs), for instance, is a very important part of the regulation that it is still far from being completely ready.
Last November, the Finance Minister of Malaysia Guan Eng has affirmed that both exchanges and ICOs would be regulated in the first quarter of 2019. However, it looks like this promise was not fulfilled yet.
Despite the fact that regulations are still not in place, some insiders are affirming that some rules for ICOs are already being debated and that they will work in a similar way to how Initial Public Offerings (IPOs) work for both values, rules and white papers.
With the regulation being successfully approved, Malaysia is going to join other countries from Southeast Asia that is slowly but surely creating an important framework for ICOs and virtual assets. Countries like Thailand, for instance, have recently done this, too.