The Southeastern Asian country of Malaysia will soon add its name to the list of world jurisdictions that have provided a regulation for cryptocurrencies.
According to a local news agency, the country's Finance Minister Lim Guan Eng. confirmed that the Securities Commission is working towards finalizing the regulatory framework by the first quarter of 2019. The Securities commision has been working on the regulations since early 2018.
Lim was speaking at the FinTech Conference 2018 organized by Malaysia's Securities Commission and emphasized the fact that rolling out regulations will be for the benefit of everyone.
He pointed out that such a move will protect crypto investors. On the other hand, it allows startups in the country to grow “beyond the traditional channels of financing” and also to operate their businesses under supervision.
The proposed regulations will cover Initial Coin Offerings (ICOs), cryptocurrency exchanges as well as the general use of digital assets in Malaysia. The top official says it is being developed by the Malaysia Ministry of Finance in partnership with the Bank Negara Malaysia.
Collaboration With Regulators Will Be Key
For the new regulatory framework to be effective in the country, Lim stressed that interested parties must be willing to work with the country's Central Bank which is under the supervision of the Ministry of Finance.
These comments mirror those that he made in the parliament last week regarding a certain party in the country who wants to launch a cryptocurrency known as Harapan Coin. Liam said then,
“I advise all parties wishing to introduce bitcoin (style) cryptocurrency to refer first to Bank Negara Malaysia as it is the authority that will issue the decision on financial mechanism.”
Crypto-related business in the country will hope that the regulations to be introduced are easy to abide by and also provide a safe haven for the growth of the ecosystem.
If Malaysia eventually regulates the crypto and blockchain industry by Q1 of 2019, then the country will join neighbors Thailand as the earliest Asian nations to do so. France and Uganda other world jurisdictions who have recently made a move to regulate the industry