Country Heights shareholders approve cryptocurrency plan

SERI KEMBANGAN: Country Heights Holdings Bhd's (CHHB) shareholders have approved the company's plan for an initial coin offering (ICO) to issue its own cryptocurrency to be known as "Horse Currency" despite market concerns over its legitimacy.
Executive chairman and founder Tan Sri Lee Kim Yew (pix) said it will immediately set up a task force to oversee the acquisition and investment of the blockchain technology and the setting up of its infrastructure throughout all of CHHB's portfolio.
"We are going to immediately appoint technology partner and legal adviser. At the same time, we are setting up a task force. This task force is to ensure that the company will get the latest blockchain technology and make sure it is not only for cryptocurrency issue but at the same time, it can service all the businesses of the company such as car city, resort and hospitality, healthcare and property," he told reporters after its EGM today.
Lee said the 20-member task force will continue to engage with regulators such as Bursa Malaysia, the Securities Commission (SC), Bank Negara Malaysia (BNM) as well as the Malaysia Blockchain Association.
This will enable CHHB to be the first public listed company to implement its cryptocurrency after SC issues its guidelines for cryptocurrency and digital assets in the first quarter of 2019.
On engagement with SC, he said the group has been in talks with the regulator but was not asked by SC to make any submissions.
Lee said the task force will also be responsible for the risk management of the currency and upon successful issuance, it will communicate the currency's potential usage and benefit to the public and ensure its public subscription.
In addition, the task force will look at setting up a cryptocurrency wallet. Lee said it will either collaborate with e-wallet players or if necessary, set up its own e-wallet service in the future.
"We are also trying to engage investment bankers who are keen on the cryptocurrency … besides the technical partner and legal advisor, we think it may also be necessary to engage an investment banker," he said.
CHHB is setting up a Blockchain Innovation Lab at its headquarters.
The group plans to issue one billion units of Horse Currency backed by RM2 billion worth of assets held by the holding company with an initial 300 million open to the public for circulation. Lee said it hopes to rope in an investment banker or foreign investors to underwrite the initial issuance.
Although the RM2 billion assets are not reflected in its balance sheet, Lee gave an assurance that the holding company has RM2 billion worth of assets after revaluation. The list of assets, comprising properties, will be revealed in the whitepaper along with other details of the ICO.
"We need to invest in talent, software, wallet. All these investment in the hardware, software, implementation of the technology itself, right now at the first stage we are putting in RM5 million budget to take us to the next stage," said Lee.
"Even after we do this to implement blockchain technology, we still need to get shareholders' second round of approval. We are doing this the patient and prudent way to eliminate risk," he added.
Lee said using blockchain technology and cryptocurrency to raise funds will be an inevitable trend, which will open up a new horizon for capital markets and make the Malaysian capital market more interesting.