From merely cautioning investors against initial coin offerings a few months ago (See IFN Fintech September issue), the Malaysian securities watchdog is now taking a stronger stand on cryptocurrency as it moves toward formally regulating digital currencies including secondary market trading of digital assets.
Working closely with the central bank, Securities Commission Malaysia (SC) is currently putting together guidelines on cryptocurrency, confirmed SC Chairman Ranjit Singh, who did not give a specific timeframe as to when the framework would be ready, but did however note that it could be released in the coming months.
“We want to make sure that we have taken into consideration the developments that have occurred quite recently – the different positions taken on by different regulators around the world,” commented Singh, adding that the regulator will review relevant regulations and guidelines to facilitate functional and effective use of digital assets in the market, including secondary market trading of established cryptocurrency and digital assets.
The framework would provide the clarity needed to wade through the murky world of digital currencies; IFN Fintech has learned that several Islamic fintech companies are keeping a close eye on the regulators’ next steps before diving into the digital token space.