Pursuant to the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 (the “Prescription Order”), which came into force on 15 January 2019, digital currencies and digital tokens which are not issued or guaranteed by any government body or central bank, and fulfils other specific features, are prescribed as securities. The implications of treating digital currencies and digital tokens as securities are significant as the Malaysian Capital Markets and Services…

The global frenzy around cryptocurrencies has seen prices fluctuate dramatically over the past year, leading to a growing interest among Malaysian investors. The Central Bank of Malaysia (BNM) has repeatedly maintained its position that digital currencies are not legal tender in Malaysia, and has advised the public to be cautious of the risks that come with them. While there are no specific Malaysian regulations governing cryptocurrencies or their exchanges, the Malaysian Anti-Money Laundering, Anti-Terrorism Financing…