Tuesday 16 Jul 2024
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KUALA LUMPUR (Jan 19): Malaysia's regulators today warned against the public's involvement in initial coin offering (ICO) schemes, saying it is an offence to carry on such activities without proper authorisation.

In a joint statement, the Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) said such schemes may involve activities that are subject to laws administered by the two regulators.

The statement came amid warnings of a possible cryptocurrency bubble.

"Issuers of ICOs should be mindful that the launching of an ICO, the offering of digital tokens in exchange for digital currency or any form of payment and incidental activities thereof, may trigger regulatory requirements under securities laws," they said.

"In addition, no person is permitted to carry out any regulated activities such as fundraising, fund management and dealing in capital market products without obtaining necessary approval or authorisation from the SC," they added.

The SC and BNM also noted that ICO operators are prohibited from undertaking regulated activities such as deposit taking and banking business, foreign exchange administration activities and remittances, without the necessary authorisation under financial services laws administered by the central bank.

They also advised the public to exercise caution before participating in an ICO.

"The public is advised to refer to the list of institutions that are licensed or approved to carry out regulated activities under the laws administered by the SC and BNM. Both authorities will continue to monitor these developments, and will not hesitate to take action against any person conducting illegal or unauthorised activities," they added.

 

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