According to a media report, 15 new regulations concerning the crypto sector came into effect in Malaysia on 15 January. After the implementation of these new regulations, the country’s crypto sector may have to go through tough legalization processes. However, strict regulations are expected to attract more investors as it will lead to improved security.
As reported by the media, from now on, cryptocurrencies, tokens and crypto assets will be classified as securities. These securities will be under the jurisdiction of the Malaysian Securities Commission.
The new regulations state that a 10-year jail sentence and fines (up to USD 2.4 million) will be imposed on any unauthorized cryptocurrency exchanges or initial coin offering. Although some people are calling it a very harsh act, others seem to be satisfied as it will bring more transparency.
It may seem like the Malaysian government has taken a hard line regarding the crypto sector but the media reports claim that there are positive sentiments in the government regarding cryptocurrencies and blockchain technology.
Lim Guan Eng, Finance Minister, expressed his views saying that the government is well aware of the potential of the crypto sector and is looking to take advantage of it in order to improve the economic condition. He added that the government believes innovation can be brought into both old and new industries by utilizing blockchain technology. Digital assets can become an alternative asset for investors as well as for entrepreneurs and new businesses.
In the previous weeks, there were ambiguities regarding the Malaysian government’s stance on cryptocurrencies. However, the finance minister’s recent address has cleared the situation.
It is important to note that the Malaysian government has a high level of awareness regarding the crypto sector. Previously, the central bank decided to set up a cryptocurrency unit along with a fintech sandbox. Apparently, the recent regulations are aimed at bringing more transparency to the sector in order to increase the trust level of investors. The move will likely turn out to be a beneficial one for the crypto sector.
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