The Securities Commission (SC) of Malaysia registers three cryptocurrency exchanges Luno Malaysia, Sinegy Technologies and Tokenize Technology, wherein they are granted up to nine months to achieve compliance with the SC’s regulation standards, according to a press release on June 4.
Reportedly Crypto exchanges in the country are required by law to register with the SC and subsequently earn approvals. The three exchanges are purportedly the only ones, who have registered their digital asset exchanges to operate in Malaysia, as stated by Luna in a statement with Cointelegraph. Luno General Manager of Southeast Asia David Low said:
“We’ve been working closely with regulators and banks to complete the groundwork for the buying, selling and storing of cryptocurrencies and digital assets, which we believe are the future of money. Regulation will ultimately bring clarity and protection to consumers, and will ensure that all cryptocurrency businesses have adequate standards in place to protect investors and their funds.”
On January 15, the SC introduced the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019, which was soon followed by revised Guidelines on Recognized Markets on January 31.
As per the service order released on January 15, cryptocurrencies are classified as securities i.e. they now fall under the SC’s legal purview. The SC has since then published two papers that are addressed to the public and one of its agenda items includes gathering feedback on its proposed regulations pertaining to initial coin offering (ICO).
A similar action was taken by the Canadian Securities Administrators and the Investment Industry Regulatory Organization of Canada. Though the papers released by them for public feedback on proposed regulations for cryptocurrency garnered heavy disagreement and criticism from a major Canada-based exchange Kraken.
The exchange’s key objection was that neither cryptocurrencies, nor the agreements between exchanges and users, constituted securities at all.
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