Cryptocurrency regulations in Malaysia – Japan Security Token Business Association  
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Cryptocurrency regulations in Malaysia

Contents

1 Cryptocurrency in Malaysia
2 Government’s attitude towards cryptocurrency
3 Cryptocurrency growth prospect in Malaysia
4 The effect of Malaysia’s regulations on STO in the Philippines
5 The effect of Malaysia’s regulations on STO in Japan
6 References

1 Cryptocurrency in Malaysia

ICO and cryptocurrency trading has been considered gray area of regulation.
Cryptocurrency trading volume is among the top in South East Asia alongside Singapore.

2 Government’s attitude towards cryptocurrency

The government conducted a research in 2014 and concluded that it is not important.
In September 2017, after cryptocurrency started receiving attention, the government announced that it will enact a guideline to the industry.
During thins period, ICO and cryptocurrency were in gray area.
The original plan was to release the guideline in November 2017, but the announcement was postponed until January 2019.
The government announced the guideline in January 2019 and it is as follows.
・Cryptocurrencies and tokens will be classified as securities.
・ICO is legal if it is approved.
・Anyone who trades or conducts an approved ICO will be punished with 10 years in prison and 10 million ringgit (2.4 million dollars). The regulation is already in place, and some adjustments will be made until the end of March 2019.

3 Cryptocurrency growth prospect in Malaysia

Government monitored ICO approval system will lead to credibility increase of the coin.
The market might grow if it can overcome the weaknesses of ICO such as volatility.

4 The effect of Malaysia’s regulations on STO in the Philippines

The recent announce from the Malaysia government is essentially an announcement of the framework of STO.
Although there are some changes being made to the framework, an implementation of a clear rule will provide a friendly business environment to STO businesses.
We expect the regulation will lead to a wide credibility discrepancy between approved and un approved ICO, and it will be reflected in the price.

5 The effect of Malaysia’s regulations on STO in Japan

The core framework, which requires government approval for ICO is same asSTO.
However, the Malaysia government does not clearly state that it is STO. There is no precedent for creating an approval system for ICO, and it is still in the experimental phase.
We need to pay attention to the effect of this new policy. We can also reference the government’s approval criteria.

6 引用文献

Malysia’s regulation classifies digital assets as securities
Malysia legalizes ICO and tokens

マレーシアにおける暗号通貨の規制動向