KUALA LUMPUR: Operators of digital asset platforms are not permitted to accept new investors during the transitional period until March 1. In addition, no person can conduct any initial coin offering (ICO) activity without prior authorisation.
The Securities Commission’s (SC) warning comes after it was tasked with regulating digital assets effective Jan 15.
In a statement released today, the SC said it has received numerous queries since the coming into force of the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019.
Following the engagement with the existing digital asset platform operators, arrangements have been put in place to facilitate the operations of these platforms for a transitional period until March 1, subject to them fulfilling the conditions specified by the SC.
“During this period, these platform operators will not be permitted to accept new investors and will only be allowed to facilitate the withdrawal or transfer of client assets with the written instruction of the investor,” it noted.
Existing platform operators who failed to or did not attend the engagement with the SC today are advised to contact the SC immediately and not later than Jan 25, failing which they will be deemed to be operating a market in breach of securities laws.
“Once the relevant guidelines have been issued, existing platform operators will be required to apply to the SC for authorisation if they intend to operate beyond the transitional period.
“Prospective operators can also apply to the SC for authorisation once the guidelines are issued. The SC will evaluate all applications and will only authorise market operators that fulfil the relevant requirements,” it said.
On ICO, the SC said the related guidelines will be issued by the end of Q1 2019. “In the meantime, ongoing ICOs should cease all activities and return all monies or digital assets collected from investors.”
