Fiscal cryptocurrency regulation Has effect on Tuesday, Reuters reports on Monday, Jan. 14.
The Malaysian finance minister, Lim Guan Eng, reportedly said today that the Capital Markets and Services Order 2019 would become effective on Jan. 15. According to Reuters, the new regulation classifies digital currencies, tokens and crypto-assets as securities, placing them beneath the Securities Commission's authority.
Starting from Tuesday, any individual operating unauthorized preliminary coin offerings (ICOs) or digital asset exchanges in Malaysia will soon be reportedly facing a 10-year prison sentence and a 10 million ($2.4 million) ringgit fine.
According to Malaysian news outlet The Star,'' Eng noted the positive outlook of the Ministry of Finance on the cryptocurrency Business, stating:
"The Ministry of Finance views digital resources, in addition to its underlying blockchain technology, as having the capacity to contribute innovation in both old and new sectors."
Namely, Eng noted that the ministry believes digital assets provide both an alternative underwriting method along with also a new asset class for investors.
Since Cointelegraph reported, the Malaysian government was undecided whether to legalize cryptocurrencies just two weeks ago.
However, it has reportedly been clear since November of this past year which Malaysia will enact regulations for cryptocurrency and ICOs in Q1 2019, as Cointelegraph reported at the moment.