The Malaysian Securities Commission has finally come to a final decision regarding the rules for the initial sale of tokens and exchange offers in its jurisdiction. The rules begin to apply in the second half of this year.
SC shared this news on Twitter:
SC’s Chairman on Guidelines on Digital Assets, “Digital tokens offering provides alternative fundraising avenue 4 early stage entrepreneurs. This initiative supports Msia’s Shared Prosperity Vision 2030 by supporting the growth of SMEs & micro businesses”. https://t.co/cEiJusXS3f
— SC Malaysia (@SecComMY) January 15, 2020
Projects that decided to conduct fundraising in this way are now allowed to sell tokens through venture funds and financial or credit institutions. Institutional and private investors can participate in ICO / IEO.
But the SC of Malaysia decided to limit the maximum amount of fees (Hardcap) to 24.5 million dollars (100 million Malaysian ringgit).
Startup organizers will be required to register and conduct an examination of the token issuer in order to prove the quality and reliability of the project.
Recall that a year ago a law was passed in the country that equated cryptocurrencies with securities, and violators face up to 10 years in prison for illegally organizing ICOs or launching trading floors.