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Malaysia plans cryptocurrency regulations

Malaysia’s securities regulator is planning a regulatory framework for cryptocurrencies. Yesterday at the SCxSC Digital Finance Conference in Kuala Lumpur, the chairman of Securities Commission Malaysia, Tan Sri Ranjit Ajit Singh, explained that Securities Commission is working on “relevant regulations and guidelines” for functional use cases of digital assets. These include “secondary market trading of established cryptocurrency and digital assets” in the capital market.

According to Edge Markets, Ranjit indicated that SC is working closely with the country’s central bank, Bank Negara Malaysia (BNM), to sketch out a framework on cryptocurrencies that it expects to finalize in the coming months. He reported that “together with BNM, we will look at the area carefully and as SC is in charge of the secondary market, we would craft regulations to ensure that the trading values have the right conditions in place for market integrity and investor projection purposes”. Ranjit also said that various cryptocurrency exchanges have approached the regulator and once the framework is outlined, the SC would then see which exchanges are registered.

Furthermore, his agency is working on a pilot project to explore distributed ledger technology (DLT) for unlisted and OTC markets. Planned to boost digital innovation in Malaysia’s capital markets, Ranjit said the findings from the pilot would be published as an “industry blueprint.”

The news may mark a softening of the country’s previous stance on the trading of cryptocurrencies, but in a more secure way. A month ago, the central bank indicated it may make a decision on whether to ban the trading of cryptocurrencies “before the end of the year.” It seems it is not the case anymore.

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