The Securities Commission Malaysia (SC) has published a consultation on a framework for Initial Coin Offerings (ICOs). The SC is one of many financial regulators that are seeking to better understand digital assets while investigating potential regulatory environments to create an effective ecosystem.
The SC consultation paper discusses the proposed framework for, among others, the eligibility of issuers, the need for transparent and adequate disclosures as well as utilisation of proceeds of COs.
The SC states that blockchain and digital assets may be able to enhance efficiencies in the capital market including lowering post-trade latency and counterparty risks. Additionally, digital assets may be able to enable “seamless regulatory reporting and compliance.”
The regulator recognizes that digital assets can act as an alternative asset class for investors and as part of their remit is to promote the development of capital markets they are pursuing a regulatory framework that attempts balance innovation and investor protection.
The public may submit their comments to CPLawReform@seccom.com.my until 29 March 2019.