[{"data":1,"prerenderedAt":123},["ShallowReactive",2],{"/blog/digital-assets-prescribed-securities-2019":3},{"id":4,"title":5,"author":6,"authorPic":7,"body":8,"category":112,"coverPics":18,"date":113,"description":114,"extension":115,"meta":116,"navigation":117,"path":118,"seo":119,"stem":120,"type":121,"__hash__":122},"blogs/blog/digital-assets-prescribed-securities-2019.md","It's official — digital currencies and tokens are now securities in Malaysia","Malaysia Blockchain Association Team","https://api.dicebear.com/7.x/avataaars/svg?seed=mba-team-3",{"type":9,"value":10,"toc":103},"minimark",[11,19,22,34,39,50,54,61,64,69],[12,13,14],"p",{},[15,16],"img",{"alt":17,"src":18},"Regulatory file","/img/blog/gen/digital-assets-prescribed-securities-2019.svg",[12,20,21],{},"Malaysia's crypto industry woke up today inside the securities perimeter.",[12,23,24,25,29,30,33],{},"The ",[26,27,28],"strong",{},"Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019"," — gazetted as P.U.(A) 12/2019 — comes into force today, prescribing digital currencies and digital tokens (other than those issued or guaranteed by a government or central bank) as ",[26,31,32],{},"securities"," under the Capital Markets and Services Act 2007. That places them squarely under the Securities Commission's jurisdiction.",[35,36,38],"h2",{"id":37},"the-finance-ministers-warning","The Finance Minister's warning",[12,40,41,42,45,46,49],{},"Announcing the order, Finance Minister ",[26,43,44],{},"Lim Guan Eng"," was blunt: anyone offering ICOs or operating digital asset exchanges without SC approval faces up to ",[26,47,48],{},"10 years' imprisonment and a fine of up to RM10 million",".",[35,51,53],{"id":52},"a-transitional-runway","A transitional runway",[12,55,56,57,60],{},"The SC has said regulations for the offering and trading of digital assets will follow by the end of the first quarter. In an implementation statement, it allowed existing digital asset platform operators to continue on a transitional basis until ",[26,58,59],{},"1 March 2019"," — but during that window they cannot accept new investors, and may only process withdrawals or transfers on written investor instruction. The revised Guidelines on Recognized Markets, issued 31 January 2019, will create the registration regime for Digital Asset Exchanges (DAX).",[12,62,63],{},"The association's view: certainty beats grey areas. A licensing regime raises the bar to operate — and gives serious builders a rulebook to build against.",[65,66,68],"h3",{"id":67},"references","References",[70,71,72,82,89,96],"ul",{},[73,74,75],"li",{},[76,77,81],"a",{"href":78,"rel":79},"https://www.nst.com.my/news/nation/2019/01/450532/order-prescribe-digital-assets-securities-comes-force-tomorrow",[80],"nofollow","New Straits Times — \"Order to prescribe digital assets as securities comes into force tomorrow\" (14 Jan 2019)",[73,83,84],{},[76,85,88],{"href":86,"rel":87},"https://www.sc.com.my/resources/media/media-release/media-statement-on-implementation-of-digital-assets-prescription-order",[80],"Securities Commission Malaysia — media statement on implementation of the Prescription Order",[73,90,91],{},[76,92,95],{"href":93,"rel":94},"https://theedgemalaysia.com/article/sc-digital-asset-platform-operators-can-operate-till-march-1-while-awaiting-guidelines",[80],"The Edge Malaysia — \"SC: Digital asset platform operators can operate till March 1 while awaiting guidelines\"",[73,97,98],{},[76,99,102],{"href":100,"rel":101},"https://blockchain.bakermckenzie.com/2019/01/17/digital-currencies-and-digital-tokens-are-regulated-as-securities-under-malaysian-securities-laws/",[80],"Baker McKenzie — analysis of the Prescription Order (17 Jan 2019)",{"title":104,"searchDepth":105,"depth":105,"links":106},"",2,[107,108],{"id":37,"depth":105,"text":38},{"id":52,"depth":105,"text":53,"children":109},[110],{"id":67,"depth":111,"text":68},3,"News","2019-01-15","The Prescription Order takes effect, placing digital currencies and tokens under the Capital Markets and Services Act and the SC's jurisdiction. Unlicensed ICOs and exchanges now risk up to 10 years' jail and a RM10 million fine.","md",{},true,"/blog/digital-assets-prescribed-securities-2019",{"title":5,"description":114},"blog/digital-assets-prescribed-securities-2019","blog","M2uhrXoynpkIiu73V9-FadJTPA8wesG2itRxV7sCmu0",1784183600568]