Who regulates crypto in Malaysia? As of today, there's an official answer.
Bank Negara Malaysia and the Securities Commission Malaysia have issued a joint press statement clarifying their respective remits over digital assets — ending months of speculation about how the two regulators would divide the territory.
The division of labour
- The SC will regulate issuances of digital assets via initial coin offerings (ICOs) and the trading of digital assets on exchanges in Malaysia. Digital assets come within securities laws, with the goals of fair and orderly trading and investor protection.
- BNM retains oversight of payments: ICO issuers and exchanges dealing in assets with payment functions must comply with central bank laws on payments and currency matters.
Both regulators committed to coordination arrangements so that market participants can comply with the laws under each authority's purview.
The now-familiar caveats
The statement reiterates that digital assets are not legal tender in Malaysia, and cautions the public on risks from price volatility to cyber threats. The regulators had earlier issued a joint response to press commentary titled "Policy confusion over cryptocurrencies," reinforcing the same division of labour.
For the industry, the significance is structural: Malaysia now has a clear dual-regulator model for digital assets. With securities legislation for digital assets expected in early 2019, today's statement is the blueprint for what comes next.