Malaysia SC To Solicit Industry Feedback On Digital Asset Wallet Providers Groundwork

Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic
  • The Security Commission Malaysia (SC) is currently hunting and exploring industry feedback on the regulatory framework around digital assets.
  • SC is now seeking feedback on the regulatory structure for digital asset wallet providers.
  • This new regulatory structure will be created to complements the existing framework for Digital Asset Exchange (DAX) and Initial Exchange Offering (IEO).

Per reports, the Security Commission Malaysia (SC) is currently hunting and exploring industry feedback on the regulatory framework around digital assets. The Securities Commission (SC) is a judicial institution entrusted with the responsibility of systematically developing and regulating the capital markets. Headquartered in Kuala Lumpur, SC is now seeking feedback on the regulatory structure for digital asset wallet providers.

This new regulatory structure will be created accordingly so that it complements the existing framework for Digital Asset Exchange (DAX) and Initial Exchange Offering (IEO). Whenever the framework is finalized, it’ll be included in the Guidelines on Digital Asset. 

Main Objectives Of The SC

The main functions of the Securities Commission Malaysia include supervising digital asset exchanges, ensuring proper conduct of market institutions and licensed people, and regulating all matters relating to securities and futures contracts. With the addition of the new framework which it is looking for, the SC will also be controlling Digital Asset wallet providers. 

Who Are Digital Asset Wallet Providers?

Those entities which provide custody or storage services on behalf of digital asset owners are called Digital Asset wallet providers. They enact an essential role within the ecosystem as they safeguard the digital assets of the clients. 

Request From The Sc For Framework Feedback

The SC requested the wallet providers or any interested parties to come and discuss their business operations and provide feedback on the structure for wallet providers. The statement read that the existing providers and interested parties should contact the regulator for a meeting session before 14th August 2020.

Before this, the SC had circulated the Guidelines on Digital Assets, which just briefly outlined the framework for fundraising digital token offerings in Malaysia. This circular published on 15th January.

According to the SC’s earlier guidelines, an initial coin offering allowed companies with an innovative idea to raise capital before it was able to do so through venture capitalists. Not only this, but it also enables the firm to raise funds without selling their equity or taking on debt. 

The SC aims to add the suggested guidelines in the second half of 2020 so that potential issuers can familiarize themselves with the requirements.

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