Securities Commission Malaysia published a detailed set of guidelines regulating digital coin offerings. Digital token offerings in Malaysia would now be done via Initial Exchange Offerings instead of Initial Coin Offerings (ICOs).
Regulations to be implemented in the second quarter of 2020.
The Securities Commission noted that no one would be permitted to conduct any digital token offerings in the country until the new guidelines are implemented. The newly introduced crypto token sale regulation is expected to come into effect sometime later this year. IEO platforms would be required to assess the token issuers and digital token itself and meet eligibility criteria.
Crypto exchanges that want to trade ICO tokens must possess a DAX license.
Crypto exchanges registered as IEO operators must maintain a minimum paid-up capital of RM 5 million ($1.2 million). In addition to that, crypto exchanges looking to trade ICO tokens must also possess a Digital Asset Exchange (DAX) platform license.
Earlier, the US Securities Exchange Commission issued a statement warning investors of Initial Exchange Offerings, saying that they might no be complying with securities laws. The SEC had also warned that they might crackdown on exchanges that carry out IEOs.