Bank Negara issues warning over unauthorised ICO activities

Reuters

Malaysia’s regulators have issued a cautionary statement to remind the public that the carrying out of unauthorised initial coin offering activities is an offense.

In a joint statement, Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) said: “Issuers of ICOs should be mindful that the launching of an ICO, the offering of digital tokens in exchange for digital currency or any form of payment and incidental activities thereof, may trigger regulatory requirements under securities laws.”

“In addition, no person is permitted to carry out any regulated activities such as fundraising, fund management and dealing in capital market products without obtaining necessary approval or authorisation from the SC,” the regulators said.

ICO operators are also prohibited from undertaking regulated activities such as deposit-taking and banking business, foreign exchange administration activities and remittances, without authorisation from BNM.

“Members of the public are reminded to exercise caution before participating in an ICO and are advised to refer to the list of institutions that are licensed or approved to carry out regulated activities under the laws administered by the SC and BNM.” the authorities said.