Friday January 19, 2018
05:03 PM GMT+8

UPDATED:
January 19, 2018
05:52 PM GMT+8

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Cryptocurrencies are seen on a website that tracks the value of initial coin offerings in this illustration photo taken September 5, 2017. — Reuters picCryptocurrencies are seen on a website that tracks the value of initial coin offerings in this illustration photo taken September 5, 2017. — Reuters picKUALA LUMPUR, Jan 19 — The Securities Commission Malaysia (SC) reminded the public today that participating in unauthorised initial coin offering (ICO) schemes may be illegal.

The securities regulator said the launch of an ICO and the offering of digital tokens in exchange for digital currency or any form of payment may be required to follow regulations under securities laws.

“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,” it said in a statement.

The SC also advised the public 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 Bank Negara Malaysia (BNM).

Furthermore, both authorities reminded that ICO operators are prohibited from undertaking regulated activities such as deposit taking and banking business, as well as foreign exchange activities and remittances without the authorisation under financial services laws by BNM.

SC and BNM will continue to monitor these developments, and will not hesitate to take action against any person that conducts illegal and unauthorised activities, it said.

Previously, SC directed Singapore-based blockchain platform, CopyCash Foundation, to cease and desist all its proposed activities including a planned ICO, as digital currencies were not recognised and regulated in the Malaysia.

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