We welcome the announcement that the Securities Commission will be working together with Bank Negara Malaysia to formulate a regulatory framework for digital currencies and tokens. This effort will provide much needed certainty and oversight over a rapidly growing industry. We are also glad that the benefits and potential of blockchain technology and digital assets have been recognized.
There are however concerns among ACCESS members, industry participants and the public over the implications of The Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 which came into force on the 15th January 2019 that classifies practically all digital currencies and tokens as securities. Whereas more nuanced classifications by other regulators in the world were able to give exceptions to community or academia-driven tokens.
ACCESS Malaysia appreciates the urgent need for investor protection especially in fund-raising activities and to ensure those dealing in digital assets have the necessary safeguards and capabilities along with good enforcement of AMLA and KYC practices to promote a healthy industry. We are however confident that these goals can be met without stifling innovation or introducing high barriers of entry; through a measured and balanced approach.
With the broad classification of digital assets as securities, we fear that Malaysians will be excluded from participating in the global ecosystem when our neighbouring countries are actively ramping up engagement and innovation in the space.
We are actively pursuing further consultation and dialogue with the regulators and welcome feedback from our members and the public.
About ACCESS Malaysia:
ACCESS BLOCKCHAIN ASSOCIATION (MALAYSIA) is a non-profit organization consisting of individuals, companies and associations who are passionate about the development of our local blockchain and cryptocurrency ecosystem.
Our volunteers have been actively engaging with the many stakeholders since our founding; banks, accountants, auditors, academics, consumer groups, LHDN, BNM, SC and other institutions.
ACCESS Blockchain Association (Malaysia)
The Executive Committee
Represented by Aaron Ting, Secretary
18 January 2019