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Malaysia

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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…

A press release from Bank Negara Malaysia (BNM), Malaysisa’s central bank, stated that the  “Anti-Money Laundering and Counter Financing of Terrorism Policy for Digital Currencies”  went into effect as of February 27, 2018.   It had been introduced as a draft in December 2017. Reporting institutions are required to conduct customer due diligence on all customers and the persons conducting the transaction when the reporting institution establishes business relationship with a customer and when the reporting…

Today, the Securities Commission Malaysia (SC) directed CopyCash Foundation to immediately cease and desist all its proposed activities, including a purported plan to launch an ICO on January 10, 2018 in Malaysia.  This directive covers all activities as described in or incidental to CopyCash Foundation’s white paper related to the ICO, including any roadshows, seminars or promotional events related to the scheme.  The directive was issued because the SC “found that there is a reasonable…

In well publicized moves in late 2017, both China and South Korea banned ICOs.  Today, the Malaysian finance minister said in an interview that Malaysia will not impose a blanket ban on cryptocurrency trading.  At the same time, South Korea’s Yonhap News Agency reported that, in a further tightening move, “The South Korean government has been developing a system that is likely to start banning the use of anonymous accounts in cryptocurrency transactions from around…